Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / News/  Twitter brings on JPMorgan as adviser alongside Goldman amid Elon Musk's bid
BackBack

Twitter brings on JPMorgan as adviser alongside Goldman amid Elon Musk's bid

JPMorgan is the latest Wall Street heavyweight to become involved with Musk’s quest to buy Twitter, and joins Goldman Sachs Group Inc. in helping deal with the 50-year-old billionaire. Morgan Stanley is working with Musk

Twitter adopted a so-called poison pill on Friday, a measure to help shield it from Musk acquiring more of the company (REUTERS)Premium
Twitter adopted a so-called poison pill on Friday, a measure to help shield it from Musk acquiring more of the company (REUTERS)

Twitter Inc. has brought on a second investment bank, JPMorgan Chase & Co., to help it respond to Elon Musk’s hostile bid, according to people familiar with the matter.

The largest U.S. bank started work recently to assist Twitter in talks with potential buyers, the people said, asking not to be identified because the matter is private. 

Representatives for Twitter and JPMorgan declined to comment. 

Besides Musk’s offer, Twitter has been fielding takeover interest from other parties, including technology-focused private equity firm Thoma Bravo, according to one of the people familiar. The New York Post reported Thoma Bravo’s interest on Thursday. 

A representative for Thoma Bravo declined to comment.

In bringing on JPMorgan, Twitter is working with a bank that hasn’t been afraid to wrangle with Musk. JPMorgan and Musk’s electric vehicle company Tesla Inc. have been embroiled in lawsuits. 

They are suing each other over stock transactions, some that are linked to Musk’s tweet in 2018 that he had secured the funding to take Tesla private, an effort that was given up weeks later. The two sides are scheduled to appear in court next week.

JPMorgan is the latest Wall Street heavyweight to become involved with Musk’s quest to buy Twitter, and joins Goldman Sachs Group Inc. in helping deal with the 50-year-old billionaire. Morgan Stanley is working with Musk.

Missing Out

JPMorgan’s involvement is also a blow to the boutique investment banks, who have been increasingly competing for market share against the bulge brackets. 

Twitter was advised by boutique advisory firm Allen & Co. in 2020 when the company was tussling with activist investor Elliott Investment Management, according to data compiled by Bloomberg.

This time around, no boutique investment bank appears to be involved although companies tend to add on more advisers as transactions drag on.

Goldman, which has been historically close to Musk, including being the lead bank in 2018’s failed attempt to take Tesla private, was conflicted from advising the billionaire due to its longstanding relationship with Twitter. 

Twitter adopted a so-called poison pill on Friday, a measure to help shield it from Musk acquiring more of the company. The move could buy the board more time to decide how to proceed.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 16 Apr 2022, 05:43 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie