Apollo Global Management and Sixth Street Partners, which were looking to finance Elon Musk earlier this year for his proposed $44 billion acquisition of Twitter (approximately Rs 3,60,300), are no longer in negotiations. with billionaire entrepreneurs too, according to two sources familiar with the matter.
Earlier this year, Apollo was in talks to provide preferred equity financing for the deal, along with Sixth Street, sources previously told Reuters.
Apollo, Sixth Street and other investors were looking to commit more than $1 billion in funding (about Rs 8,200) for the deal at the time.
Those talks ended months ago around the time Musk was starting to have second thoughts about implementing the deal, the sources cited above said. Musk initially proposed a buyback in April before returning in July, and then changed course again this week.
Musk and Twitter is currently trying to reach a settlement after months of litigation that damaged Twitter’s brand and discredited Musk over erratic behavior.
Twitter and Musk did not immediately respond to requests for comment, while Apollo and Sixth Street declined to comment.
Musk’s takeover of Twitter couldn’t have come at a worse time as the banks financed a large portion of the $44 billion deal and they could face significant losses due to the financial environment. unfavorable, Reuters reported on Tuesday.
Musk is expected to provide most of the $44 billion through funds he has raised by selling off his stake in the electric vehicle maker. Tesla and by relying on equity capital from major investors, while major banks have committed to provide $12.5 billion (approximately 1.02,300 crore) of debt financing.
© Thomson Reuters 2022
