Apollo Global Management Inc., one of the largest buyout firms in the market, is reportedly considering participating in a bid for social media platform Twitter. The firm has reportedly held discussions about offering debt financing to potential buyers of the platform, including SpaceX and Tesla CEO Elon Musk.
Elon Musk had announced his intentions to acquire Twitter for $54.20 per share, which represents a 54% premium over Twitter’s closing price when he started buying shares and a 38% premium over the day before his holdings were disclosed. Twitter’s Board of Directors has not been supportive of Musk’s acquisition attempt, with the group deciding to adopt a “poison pill” strategy.
As per a recent report from The Wall Street Journal, people familiar with the matter have stated that Twitter’s potential buyout has caught the interest of Apollo Global Management Inc. If Apollo does go through with its reported plans, the firm could provide valuable financing to Twitter’s buyer.
The Journal‘s sources, who have opted to remain anonymous because the firm’s plans are still confidential, have stated that no final decisions have been made so far. That being said, support from Apollo could significantly help potential buyers like Elon Musk acquire the social media company. Other entities reportedly taking an interest in Twitter include private equity firm Thoma Bravo LP.
Apollo Global is a private equity and lending giant with about $500 billion under management. The firm is known for its tendency to purchase companies in a wide variety of sectors, including media and insurance. Apollo typically invests across a company’s target structure, providing preferred equity or debt. The firm also participates in straightforward acquisitions.
Elon Musk currently owns over 9% of Twitter, making him one of the social media company’s single largest shareholders. Despite his large stake in the company, Musk has shared some honest criticisms of Twitter and how it is run. Quite surprisingly, Musk and his takeover initiative have received support from Twitter co-founder Jack Dorsey himself, who noted that the company has always had a “dysfunction.”
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