NY Knicks co-owner stands to reap payday from Twitter-Musk deal

3 months ago 29
Egon Durban Egon Durban has driven a hard bargain successful Twitter's negotiations with Elon Musk, sources said. Getty Images

Elon Musk’s astonishment connection to buy Twitter for his archetypal terms of $44 billion followed shrewd maneuvers by a committee subordinate who — successful summation to a large involvement successful Twitter — besides happens to ain a chunk of the New York Knicks and Rangers, sources archer The Post. 

Egon Durban — the laminitis and co-CEO of Silicon Valley hedge money Silver Lake Partners, which owns astir 10% of the Knicks and Rangers — took a hardline stance successful negotiations with Musk erstwhile different directors appeared consenting to instrumentality a colony to extremity the ineligible standoff, sources adjacent to the concern said. 

Ahead of his connection to wage afloat terms for Twitter this Tuesday, Musk antecedently approached the institution with aggregate proposals to wage little than $54.20 per share. Durban helped person chap committee members not to blink, sources said. 

“I cognize aboriginal connected [Durban] ne'er wanted to settle,” 1 root adjacent to the concern said. “He wanted to marque definite Elon was held accountable.”

Elon Musk“It’s enactment up oregon unopen up clip for Elon,” a root adjacent to the concern said.Getty Images

Durban was besides approached months agone by Musk’s ace cause person Ari Emanuel, who tried successful vain to broker a settlement, sources said. News of Emanuel’s attack was archetypal reported by Bloomberg. 

Durban’s pugnacious stance inactive appears evident successful Twitter’s attack to Musk’s caller offer. The Delaware Court of Chancery has ordered Musk to spell done with the archetypal woody by Oct. 28 oregon look Twitter’s suit successful court.

“It’s enactment up oregon unopen up clip for Elon,” a root adjacent to the concern said of Twitter’s position. “He doesn’t get to renegotiate the merger. He conscionable has to effort to close.”

Sources said Durban’s propulsion for $54.20 per stock comes mostly from $1 cardinal successful convertible Twitter shares that Silver Lake bought successful March 2020. Silver Lake tin redeem the shares astatine $41.50 a piece, according to regulatory filings. 

New York KnicksSilver Lake owns 10% of Madison Square Garden Sports, which owns the New York Knicks and Rangers. NBAE via Getty Images

Durban’s large stake connected Twitter could assistance present a payday for Silver Lake by offsetting immoderate losses from this year’s tech banal crash. 

If Musk ends up paying $54.20 a share, Silver Lake volition log a 31% instrumentality implicit 2 and a fractional years, filings show. If Twitter had theoretically settled and accepted $48 per share, for example, Silver Lake would person reported a overmuch much humble 16% return.

Private equity firms similar Silver Lake are highly incentivized to present double-digit returns connected funds. If a money delivers a instrumentality of 8% oregon more, they typically tin support 20% of the profits — but if the instrumentality is little than that threshold, the backstage equity steadfast doesn’t support immoderate of the profits.

Durban’s steadfast besides has a past with Musk. Musk hired Silver Lake successful 2018 to pb his woody squad erstwhile helium considered taking Tesla backstage on with instrumentality steadfast Wachtell Lipton. Wachtell has besides advised Twitter successful its tense negotiations with Musk.

Silver Lake, which owns a 10% involvement successful the Knicks and Rangers’ genitor institution Madison Square Garden Sports, declined to comment. Twitter besides declined to comment.