Private equity firm Apollo Global Management is considering joining a Twitter bid by offering debt financing to potential buyers, including Tesla chief executive Elon Musk, according to a person familiar with the situation.
No decision has yet been made, said the person who asked for anonymity because the talks were confidential.
The Wall Street Journal first reported Apollo’s potential participation in an offer.
Mr. Musk, the richest man in the world who also leads the rocket maker SpaceX, last week submitted an offer of around $ 40 billion to buy Twitter. Mr. Musk, whose wealth is largely tied to stocks, hasn’t offered any details on financing such a deal.
Investors were skeptical that he would be able to pool the necessary funds to buy Twitter. Analysts estimated that Mr. Musk would need $ 15 to $ 20 billion in debt to fund his efforts. He recently amassed a stake of over 9% in the company.
Last week, Twitter announced it was using a method called “poison pills, “ which would make it significantly more difficult for Mr. Musk to acquire more than 15% of the company. Twitter said the defensive ploy would not prevent the company from engaging in talks with any potential buyers and would give it more time to negotiate a deal that Twitter’s board believes best reflects the company’s value.
Mr. Musk’s approach appears to have piqued other potential buyers. At least one other private equity firm, Thoma Bravo, has expressed interest in acquiring Twitter, The New York Times had previously reported.
Mr. Musk, for his part, seems undaunted. Saturday tweeted the words “Love me tenderlyalongside the musical notes, an apparent reference to both Elvis Presley’s ballad of the same name and a “public offering” in which Mr. Musk would take his offer directly to the shareholders.
Apollo has experience in the media industry. last year, acquired AOL and Yahoo in a $ 5 billion deal.