Seems unlikely anyone will bid against Musk to buy Twitter
According to CNBC’s David Faber it “seems unlikely” that anyone will buy Twitter. This means either Musk accepts the offer or nothing.
Faber, CNBC’s “The More I Report the Less I Believe There’s Anyone Other That Really Could Show Up Here,” said Faber on CNBC’s “The Most Important Thing.”Squawk on the Street” Tuesday. Faber and CNBC’s Jim Cramer were also in agreement Disney, Salesforce Snap aren’t interested.
It’s yours, Elon Musk. Faber explained that it is up to you to determine if they can afford what you want, which would be starting with a six. Musk offered to acquire Twitter for $54.20A share is approximately $43 billion.
Although reports suggest that private equity firms may exist, Thoma Bravo may be interested in a bid for Twitter, Faber said the rates of return “don’t work.” Fellow private equity firm Apollo isn’t interested in joining a private equity consortium to acquire the social media company, according to sourcesThe person asked to remain anonymous because it was private.
Musk may be considered the richest man in the world, but many of his assets are held captive. TeslaStocks, so he will likely have to sell or borrow money to pay for the purchase.
Faber replied, “Yeah he can, that’s what we know.” How is Faber going to accomplish this? “Is it really possible that he will put so much of his net worth on the line?”
“Private equity does not exist. Faber stated that this is just marketing.
Gordon Haskett Research Advisors analyst wrote Tuesday in a note that Wall Street Journal reported Apollo had been considering joining a Twitter deal. This was mainly due to the assumption that most of the “usual suspects”, Apollo included are updating their models.
The analysts suggested that Apollo might be of assistance to Thoma Bravo in financing its operations, noting that Apollo had “played an identical role” on Bravo deals.
CNBC reached Apollo and Thoma Bravo for comments but they did not respond immediately.
This report was contributed by Alex Sherman, CNBC.