Private equity powerhouse Apollo is reportedly participating in a bid for Twitter as the drama surrounding Elon Musk’s hostile takeover lingers on.
As initially reported by the Wall Street Journal, the social network is “in play” with this bid process from one of the world’s largest buyout firms.
If true, it means Twitter is formally up for sale and the Board’s duty narrows to one responsibility: maximising shareholder value and thereby driving up the price.
The news comes as the world’s richest man Elon Musk offered to buy Twitter for $43bn (£33bn) on Thursday, filing a proposal with the US’s Securities regulator to pay investors $54.20 per share.
Musk first signalled his interest in Twitter a fortnight ago when he told followers he had snapped up a 9.2 per cent stake in the company.
Intent on thwarting Musk’s takeover ambitions over concerns the bid devalues the company, Twitter’s board has proposed adopting a “limited-duration shareholder rights plan” to stop anyone from having more than a 15 per cent stake.
The ploy, also known as a “poison pill,” is considered a final line of defence against a hostile takeover and allows investors to buy shares at a discount.
In a sign that tensions are running high, Musk took aim at members of the board tweeting on Monday: “board salary will be $0 if my bid succeeds.”