OpenAI-backed Thrive to buy ADT for $7.6 billion in cash

Who the buyer is: Thrive Holdings was spun out of Thrive Capital, the venture firm run by Josh Kushner, and was formed last year, according to TechCrunch and Bloomberg Law. OpenAI, the ChatGPT maker, took an ownership stake in Thrive Holdings in December 2025 and supplies it with AI models and engineers who work inside the companies it buys. Thrive Holdings has bought more than 75 businesses, mostly in accounting, IT services and building-related trades, and says ADT will be the foundation of a new smart-home security business. Bloomberg Law called it one of the largest bets yet for the Thrive offshoot.

The money and timing: Funds managed by Apollo, the private-equity firm, are providing all of the financing, and the deal has no financing condition, meaning it doesn't depend on raising money later. ADT expects it to close in the first quarter of 2027 if stockholders and U.S. antitrust regulators sign off. Until 11:59 p.m. Eastern on Nov. 28, ADT may shop itself to other bidders, with a possible 10-day extension.

How the market took it: ADT shares jumped about 33% Thursday to close near $9.88, just under the $10 offer, according to FinancialMarkets.com. That small gap suggests traders expect the deal to close and don't expect a higher bid. Before the deal, RBC analysts had warned that do-it-yourself alarm systems and AI could hurt ADT and had a $9 price target on the stock, the outlet reported.

From the filing: ADT's announcement includes a direct promise about customer data: "ADT's data and privacy policies will remain unchanged, and no new data sharing will occur without customer permission." That line matters because the buyer is partly owned by an AI company, and an alarm company holds sensitive details about people's homes, including when they come and go.

The case that it's a fair price: The $10 offer is nearly 46% above where the stock traded before the news, and more than 52% above its average price over the prior 30 days. A buyer paying all cash with committed financing gives shareholders certainty, and the go-shop window lets a rival bid if anyone thinks ADT is worth more.

The case that the buyer gets a bargain: ADT throws off steady cash from monthly alarm fees. It spent $607 million on stock buybacks and $187 million on dividends last year, according to FinancialMarkets.com. A patient private owner that plans to add AI tools may earn far more from that customer base than public investors were willing to pay for.

What's still unknown: Neither company has named any specific new AI products for ADT customers, TechCrunch reported. The full merger agreement, including any breakup fees, had not been filed when we checked. It's also unclear whether a rival bidder will step in before Nov. 28, how long the antitrust review will take, and how the privacy pledge would apply to any future AI features. ADT reports quarterly earnings on Nov. 3.

Sourcing: ADT's Oct. 29 press release and SEC 8-K filing for the price, premium, deal values, Apollo financing, go-shop window, closing timeline and privacy pledge. TechCrunch for Thrive Holdings' link to Thrive Capital and OpenAI's role, and for the lack of announced AI products. OpenAI's Dec. 2025 post for its stake in Thrive Holdings. Bloomberg Law for its description of the deal and Thrive Holdings' founding. FinancialMarkets.com for the stock move, RBC's earlier warning and ADT's past buybacks and dividends. The full merger agreement had not been filed when we checked.