Apollo Global Management Inc (APO.N) and Sixth Street Partners, which had been considering providing financing for Elon Musk’s proposed $44 billion takeover of Twitter Inc (TWTR.N), are no longer holding talks with the billionaire entrepreneur, said two sources with knowledge of the matter.
Apollo had been holding talks to provide preferred equity financing for the deal, together with Sixth Street, sources previously told Reuters. Apollo, Sixth Street, and other investors were considering contributing more than $1 billion in financing for the deal at the time.
In response to tweets saying that none of the entities were part of the $7.1 billion of third-party equity financing declared at the start of May, nor part of the debt financing, Musk said: “correct”.
These talks were concluded months ago around the time Musk began having doubts about the deal, the sources mentioned above said. Musk initially put in an offer for the buyout in April before retreating in July and then shifting course again this week.
Twitter and Musk are trying to come to an agreement after months of litigation that hurt Twitter’s brand and fed Musk’s reputation for unpredictable behavior. Musk and Twitter did not instantly respond to requests for comment. Apollo and Sixth Street refused to comment.
Buy Crypto NowMusk’s turn on acquiring Twitter could not have come at a terrible time for banks financing a huge portion of the $44 billion deal and they could suffer massive losses due to an unfavorable financing environment, Reuters reported on Tuesday.
Musk is expected to provide a great amount of the $44 billion through funds he amassed by selling down his stake in electric vehicle maker Tesla Inc (TSLA.O) and by depending on equity financing from major investors while top banks have pledged to provide $12.5 billion of debt financing.
