Musk may need more financing firms for Twitter deal
Musk is footing most of the bill, but has received financing from investors and major banks to provide debt financing
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Elon Musk may need to find other firms to finance his takeover of Twitter.
Apollo Global Management Inc and Sixth Street Partners, which were looking to provide financing earlier this year, are no longer in talks with the billionaire entrepreneur, according to two sources familiar with the matter.
Apollo, Sixth Street and other investors were looking to commit over $1 billion in financing for the deal at the time.
When Musk started having second thoughts about the purchase, the talks ended.
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In this photo illustration, a Twitter logo seen displayed on a smartphone screen. (Photo Illustration by Sheldon Cooper/SOPA Images/LightRocket via Getty Images / Getty Images)
Musk initially proposed the buyout in April, then backtracked in July and changed his mind once again this week.
Musk and Twitter are currently attempting to reach an agreement after months of litigation.
Representatives of both sides have held unsuccessful talks about a possible price cut to the $44 billion deal, according to the Wall Street Journal.
A sign is pictured outside the Twitter headquarters in San Francisco. (AP Photo/Jed Jacobsohn / AP Newsroom)
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Twitter and Musk did not immediately respond to request for comment, while Apollo and Sixth Street declined to comment.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TWTR | n.a. | n.a. | n.a. | n.a. |
| TSLA | TESLA INC. | 168.47 | -3.50 | -2.04% |
Musk is expected to provide much of the $44 billion through funds he has raised by selling down his stake in electric vehicle maker Tesla.
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He is also getting equity financing from large investors, while major banks have committed to provide $12.5 billion of debt financing.
Reuters contributed to this report.