Private equity firm Apollo Global Management is considering participating in a Twitter offering by offering debt financing to potential buyers, including Tesla CEO Elon Musk, according to a person with knowledge of the situation.
No decision has yet been made, said the person, who requested anonymity because the talks were confidential.
The Wall Street Journal previously reported on Apollo’s potential participation in a bid.
Mr Musk, the world’s richest man who also heads rocket maker SpaceX, last week made an offer of around $40 billion to buy Twitter. Mr. Musk, whose wealth is largely tied to stocks, gave no details on the financing of such a deal.
Investors have been skeptical of his ability to raise the funds needed to buy Twitter. Analysts have estimated that Mr. Musk would need $15 billion to $20 billion in debt to fund his efforts. He recently acquired a stake of more than 9% in the company.
Last week, Twitter announced it was using a method called a “poison pill” which would make it much harder for Mr Musk to acquire more than 15% of the company. Twitter said the defensive move would not prevent the company from talking to a potential buyer and would give it more time to negotiate a deal that Twitter’s board believes best reflects the value of the company. ‘business.
Mr. Musk’s approach appears to have spurred other potential buyers. At least one other private equity firm, Thoma Bravo, has expressed interest in acquiring Twitter, The New York Times previously reported.
Mr. Musk, for his part, does not seem discouraged. On Saturday, he tweeted the words, “love me tenderlyalongside musical notes, an apparent reference both to Elvis Presley’s ballad of the same name and to a “tender offer” in which Mr Musk would present his offer directly to shareholders.
Apollo has experience in the media industry. Last year, it acquired AOL and Yahoo in a deal worth $5 billion.
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