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 keeping with two sources aware of the matter.

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

Apollo, Sixth Street and different traders 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 by 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 present making an attempt to achieve an settlement after months of litigation that broken Twitter’s model and fed Musk’s status 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 they usually may very well be going through vital losses because of an unfavourable financing atmosphere, Reuters reported on Tuesday.

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

© Thomson Reuters 2022