Shares of Twitter Inc (NYSE:TWTR) ticked higher Monday afternoon on news that buyout firm Apollo Global could be the latest to put in an offer for the social media platform.
What Happened: After Tesla Inc (NASDAQ:TSLA) CEO Elon Musk put in a buyout offer of $54.20 per share for Twitter, many analysts and industry experts expected a higher price to come in for the company.
While Musk has said it was his final offer for the social media platform, some expect him to submit a higher buyout offer for the company, of which he owns 9.1%.
Outside of Musk, private equity has been highlighted as a potential acquirer.
Buyout firm Apollo Global Management (NYSE:APO) is considering bidding for Twitter, according to a new report from the Wall Street Journal.
Apollo, who is one of the largest buyout firms in the world, is also the owner of Yahoo, a company that could come into play as a potential partner.
Related Link: This Twitter Board Member Hasn't Used His Verified Account, Called Out For Not Using Own Product
Why It’s Important: It was reported in 2016 that Yahoo and Twitter considered merging together. Twitter met with Yahoo management including CEO Marissa Mayer to discuss a merger at the time. Sources said Twitter CEO Jack Dorsey wasn't part of the meeting.
Musk is said to be working with potential partners on a renewed bid for Twitter that could include raising the price tag.
Along with Musk’s bid for Twitter, private equity firm Thoma Bravo is expected to submit a counter-offer for Twitter and has contacted the Board of Directors over a potential deal. Twitter adopted a poison pill, making a hostile buyout unlikely to happen.
Twitter reports quarterly earnings on April 28 in a highly anticipated event that could include more public comments on buyout rumors from the company and CEO Parag Agrawal.
TWTR Price Action: Twitter shares spiked higher into the close Monday, ending the day up 8% to $48.51. Shares have traded between $31.30 and $73.34 over the last 52 weeks.
