© Reuters Apollo Global Management Backing Out of Twitter Financing for Musk
According to Chibuike Oguh from Reuters, Apollo Global Management, Inc. (APO) is backing out of Twitter, Inc. (TWTR) buyout financing for Elon Musk. According to a person familiar with the matter, Apollo Global Management, which was looking to provide $1 billion earlier this year to Elon Musk for the deal, is no longer in talks with the billionaire.
Twitter shares rose more than 22% yesterday after Bloomberg reported that Musk is proposing to acquire the company for the original offer price of $54.20 per share.
Later, it was confirmed that Musk has sent Twitter a letter, according to which he intends to proceed to close the Twitter transaction on the original terms. For the last several months, Musk tried to pull out of the buyout deal due to ongoing disagreement over the number of spam and bot accounts on the site, prompting a lawsuit regarding the takeover.
According to Reuters, Musk’s changed decision over the deal made Tesla, Inc. (TSLA) investors fear that the billionaire, who sold over $15 billion worth of Tesla shares earlier in the year to fund the deal, was spreading himself too thin.
According to Dan Ives from Wedbush, Musk’s interest in closing the deal would weigh on Tesla’s shares. “We see lingering impacts from Musk stock sales as a drag dissipating but the big worry is Musk juggling too many balls at the same time,” Ives said.
By Davit Kirakosyan
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