Hike funding

Apollo, Sixth Street dropped out of Twitter funding talks months ago

(Bloomberg) – Investment firms that had expressed an interest in helping Elon Musk fund his acquisition of Twitter Inc. dropped out of talks several months ago, around the time the mercurial billionaire backtracked, according to people familiar with the matter. .

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Firms such as Apollo Global Management Inc. and Sixth Street Partners had been in talks to contribute billions of dollars through a preferred stake – before Musk declared the deal dead, said the people, who asked not to be identified because they were not authorized. speak publicly.

Musk was looking to raise up to $6 billion from preferred stock investors to reduce the amount of cash he needed to provide for the $44 billion acquisition. Financing for the deal also includes $13 billion in debt, which a group of banks led by Morgan Stanley has agreed to provide.

Read more: Twitter LBO reignites $12.5 billion headache for Wall Street

Representatives for Apollo and Sixth Street declined to comment. A representative for Morgan Stanley did not immediately respond to a request for comment.

Reuters reported earlier that Apollo and Sixth Street are no longer in talks with Musk to fund the deal.

Musk’s attempt to walk away from the deal sparked a months-long legal drama that appeared to end on Tuesday after the billionaire said he was now ready to buy the social media giant for the price of 54 $.20 per share he had accepted. to in April.

Both Apollo and Sixth Street have significant investment arms in credit and there is always the possibility that they will re-emerge as investors later on if the banks syndicate Twitter’s buyout debt to investors.

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