Silver Lake Makes a Play for Twitter

Posted on 03/09/2020

Private equity firm Silver Lake signed a deal to make a US$ 1 billion investment into social media giant Twitter, Inc. Silver Lake agreed to purchase US$ 1 billion in aggregate principal amount of the Twitter’s 0.375% Convertible Senior Notes due 2025.

Twitter also entered into a Cooperation Agreement with Paul Singer’s Elliott Management Corporation, an investment firm whose affiliated funds own approximately 4% percent of Twitter’s common stock and economic equivalents. Twitter expects to use Silver Lake’s investment, together with cash on hand, to fund a US$ 2 billion share repurchase program that will be executed over time.

Board Changes

According to the press release, “In connection with the investment and the Cooperation Agreement, Egon Durban, co-CEO and managing partner of Silver Lake, and Jesse Cohn, partner at Elliott Management Corporation, will be appointed to the Twitter Board of Directors. In addition, the Twitter Board will continue the process of identifying a third new independent director, focusing on candidates that reflect the diversity of the Twitter service and also possess deep technology and AI expertise.”


Goldman Sachs & Co. LLC and Allen & Company LLC are serving as financial advisors to Twitter and Wilson Sonsini Goodrich & Rosati is serving as legal counsel.

Goldman Sachs also served as financial advisor to Twitter for Silver Lake’s convertible investment.

Keywords: Silver Lake Group, L.L.C. (Silver Lake Partners).

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