Apollo, Sixth Street Said to Back Out of Talks to Finance Twitter Deal

Apollo Global Management and Sixth Street Partners, which had been seeking to present financing to Elon Musk earlier this yr for his proposed $44 billion (roughly Rs. 3,60,300 crore) buyout of Twitter, are now not in talks with the billionaire entrepreneur, in response to two sources accustomed to the matter.

Earlier this yr, Apollo was in talks to offer most popular fairness financing for the deal, alongside Sixth Street, sources had beforehand informed Reuters.

Apollo, Sixth Street and different buyers had been seeking to commit over $1 billion (roughly Rs. 8,200 crore) in financing for the deal on the time.

Those talks ended months in the past across the time Musk began having second ideas about going via with the deal, the sources cited above mentioned. Musk initially proposed the buyout in April earlier than backtracking in July, after which altering course once more this week.

Musk and Twitter are at the moment making an attempt to achieve an settlement after months of litigation that broken Twitter’s model and fed Musk’s fame for erratic behaviour.

Twitter and Musk didn’t instantly reply to request for remark, whereas Apollo and Sixth Street declined to remark.

Musk’s U-turn on shopping for Twitter couldn’t have come at a worse time for the banks funding a big portion of the $44 billion deal and so they could possibly be dealing with vital losses because of an unfavourable financing surroundings, Reuters reported on Tuesday.

Musk is predicted to offer a lot of the $44 billion via funds he has raised by promoting down his stake in electrical automobile maker Tesla and by leaning on fairness financing from giant buyers, whereas main banks have dedicated to offer $12.5 billion (roughly 1,02,300 crore) of debt financing.

© Thomson Reuters 2022