So who else can buy Twitter?
Since everyone has decided that Elon Musk’s $54-a-share offer for Twitter is just a troll, the question remains who else can buy the company? Is there a suitor who can digest Twitter and deal with all its baggage? Or is the company destined to be a middling underachiever?
Twitter had adopted the poison pill plan that would make it difficult for Musk to achieve its goals and increase his stake beyond 15 percent ownership of Twitter. If he increases his stake to above 15 percent, then Twitter has the right to sell more shares to other buyers at a discount. That is, Twitter will find a white knight. The New York Post reported that private equity giant Thoma Bravo was considering a bid. The firm, which manages $100 billion, definitely has the resources to friend Twitter and mute Musk.
If not Thoma Bravo, then some other private equity firm could make a bid for Twitter. They obviously would know that they are buying an underperforming asset and squeezing out operational inefficiencies. A PE buyer would likely find a better management team than one currently in place, something the current board of directors should have done anyway.
When viewed with a broader lens, Twitter doesn’t have many options. Apple won’t want the mess on its hands. Thanks to its size and corporate needs, it is (Read more...)