By
Svetlana Soroka
April 18th, 2024
Musk’s Twitter offer has attracted private equity companies. Thomas Bravo informed Twitter that it is exploring the possibility of coming up with a bid.
As the effort to buy Twitter continues, Elon Musk said he had secured $46.5 billion in debt and equity financing to fund a potential takeover bid for Twitter Inc (NYSE: TWTR). It is no news that Musk offered to buy Twitter outrightly for $54.20 a share, or around $43 billion. In response, Twitter said the board will review the proposals and “determine the course of action.” Shortly after, the Tesla CEO posted a “Love Me Tender” tweet, which triggered reactions from many who tried to decipher if he was passing a message. Coinspeaker reported that Musk could be considering submitting a tender offer to Twitter shareholders.
Elon Musk Ready to Fund Possible Hostile Bid for Twitter
According to a recent filing with the US Securities and Exchange Commission, Musk is now considering a tender offer to purchase all outstanding shares of Twitter’s common stock. The billion stated that since the board is yet to decline or reject his initial request, he is willing to acquire all the outstanding shares. With a tender offer, Musk would be able to bring his bid directly to Twitter shareholders to acquire their stock.
The secured funds include $21 billion in equity financing and about $25.5 billion in debt financing. Wall Street’s giants such as Morgan Stanley Senior Funding Inc., Mizuho Bank, Societe Generale, BNP Paribas, and Bank of America contributed to the debt financing. While Musk already owns 9.2% of Twitter, the SEC filing confirmed that the billionaire is “exploring whether to commence a tender offer” as he furthers his takeover bid.”
Musk is considering the hostile bid after Twitter failed to respond to his offer and adopted a poison pill. The company said:
“We are in receipt of the updated, no-binding proposal from Elon Musk, which provides additional information regarding the original proposal and new information on potential financing. As previously announced and communicated to Mr Musk directly, the board is committed to conducting a careful, comprehensive and deliberate review to determine the course of action that it believes is in the best interest of the company and all Twitter stockholders.”
Before Musk launched his takeover bid, the businessman had mentioned why he wanted to buy Twitter. He believes that Twitter does not support the free speech rights of its users. Therefore, he desires the social networking service becomes a platform for free speech globally. Additionally, he wants to add an edit feature for posts. However, Musk once mentioned that he is uncertain if his acquisition plans will succeed.
Private Equities Firms Show Interest in Twitter
Musk’s Twitter offer has attracted private equity companies. Thomas Bravo informed Twitter that it is exploring the possibility of coming up with a bid. Meanwhile, Apollo Global Management is now considering ways to finance any deal regarding Twitter.
Twitter stock is currently up 0.74% to $47.43 at pre-market trading. Except for a 29.75% loss over the past year, the company has advanced. Data showed that Twitter had added nearly 9% since the year began and 35.21% in the last three months. Also, TWTR has increased almost 22% over the past month and 4.44% in the last five days.