Elon Musk may have competition: Thomas Bravo considers Twitter bid
Private equity giant Thomas Bravo is working on a possible bid for Twitter, a source close to the situation told the Post – set up to rival Elon Musk’s offer for a social giant.
“They are pushing,” the source said, referring to a private-equity company that already has technical names, including McAfee and Landesk.
It is unknown at this time what he will do after leaving the post. The company has an internal team working on a potential transaction, a source close to the matter told The Post.
“You’re not too far away,” said a second source close to the situation when asked by the post if Thomas Bravo was working on a possible bid for Twitter.
Sources said that Thomas Bravo could be the white guru for the company and CEO Parag Argaval.
Musk made a $ 54.20 non-binding offer per share for Twitter on Thursday, telling the company that it was his best and last offer. If the board does not accept his proposal, Musk said, “I will have to reconsider my position as a shareholder.” He said he was not sure if he could get on Twitter after Thursday.
Tesla founder and the world’s richest man revealed earlier this month that he owns 9.2% of Twitter.
If Twitter rejects the Musk offer, it could see its share price fall if there is no other option to disclose at a time when there is a possibility of rejection. That’s where the so-called white horse arrives.
Because of that, Thomas Bravo should move quickly – if it chooses to move forward – to show that there is a friendly alternative to the Twitter board, sources told The Post.
On its website, Thomas Bravo says: “Our private equity investment vehicles use the same investment philosophy – to partner and support existing management teams to help deliver robust operating results and drive innovation”.
Musk, on the other hand, was highly critical of the Twitter management team.
Thoma Bravo usually invests in business-to-business software companies and not companies that offer it directly to users like Twitter. In 2020, the San Francisco- and Chicago-based company announced that it was closing a $ 17.8 billion acquisition fund and had $ 103 billion in assets under its management through its various vehicles.
Meanwhile, Twitter generates significant cash flow and is not a bad leverage buyer candidate, one of the sources said. Source said the company will look at the potential when it comes to controlling Thomas Bravo costs and widening profit margins.
Thomas Bravo last month signed a $ 10.7 billion acquisition deal to acquire a listed unplanned company that designs software modeling for various business outcomes.
The source said there is a huge demand from Thomas Bravo fund investors to co-invest in a deal outside the fund and many may even invest in a very large Twitter deal.
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