Apollo Global Management Inc and Sixth Street Partners, which were looking to provide financing for Elon Musk's proposed $44 billion buyout of Twitter Inc, are no longer in talks with the billionaire entrepreneur, according to a Reuters report quoting two sources with knowledge of the matter.
According to Reuters, Apollo and Sixth Street were in talks to provide preferred equity financing for the transaction. At the time, Apollo, Sixth Street, and other investors were looking to commit more than $1 billion in financing for the deal.
Musk responded to tweets claiming that neither entity was part of the $7.1 billion in third-party equity financing announced in early May, nor the debt financing, with the words "correct."
According to the sources cited above, these talks ended months ago, around the time Musk began having second thoughts about the deal. Musk first proposed the buyout in April, then backtracked in July before changing his mind again this week.
Musk and Twitter are attempting to reach an agreement following months of litigation that has harmed Twitter's brand while also feeding Musk's reputation for erratic behavior.
Requests for comment from Twitter and Musk were not immediately returned. Sixth Street and Apollo both declined to comment.
Musk's decision not to buy Twitter could not have come at a worse time for the banks funding a large portion of the $44 billion deal, which could result in significant losses due to an unfavorable financing environment, according to Reuters on Tuesday.
Musk is anticipated to raise the majority of the $44 billion in funds raised by selling his stake in Tesla Inc and relying on equity financing from large investors, while major banks have committed to providing $12.5 billion in debt financing.
(Source:www.reuters.com)
According to Reuters, Apollo and Sixth Street were in talks to provide preferred equity financing for the transaction. At the time, Apollo, Sixth Street, and other investors were looking to commit more than $1 billion in financing for the deal.
Musk responded to tweets claiming that neither entity was part of the $7.1 billion in third-party equity financing announced in early May, nor the debt financing, with the words "correct."
According to the sources cited above, these talks ended months ago, around the time Musk began having second thoughts about the deal. Musk first proposed the buyout in April, then backtracked in July before changing his mind again this week.
Musk and Twitter are attempting to reach an agreement following months of litigation that has harmed Twitter's brand while also feeding Musk's reputation for erratic behavior.
Requests for comment from Twitter and Musk were not immediately returned. Sixth Street and Apollo both declined to comment.
Musk's decision not to buy Twitter could not have come at a worse time for the banks funding a large portion of the $44 billion deal, which could result in significant losses due to an unfavorable financing environment, according to Reuters on Tuesday.
Musk is anticipated to raise the majority of the $44 billion in funds raised by selling his stake in Tesla Inc and relying on equity financing from large investors, while major banks have committed to providing $12.5 billion in debt financing.
(Source:www.reuters.com)
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