Apollo Global Management Says it Would Finance a Buyout for Twitter

According to sources, Apollo Global Management has said that it would finance a Twitter buyout.

Private equity firm Apollo Global Management would consider providing financing for a Twitter buyout in the form of preferred equity, said the sources, who asked not to be named because the discussions are private.

The sources added however that Apollo isn’t interested in joining a private equity consortium to acquire the social media company.

Tesla CEO Elon Musk offered to buy Twitter for $43 billion last week. Twitter’s board is likely to reject that offer, according to a Wall Street Journal report.

The unidentified sources have said there are people considering their willingness to lend to Musk or another potential buyer. Twitter had negative cash flow last year, making it an unusual candidate for a leveraged buyout.

Last Friday, Twitter adopted a limited duration shareholder rights plan, often referred to as a “poison pill,” in an effort to fend off a potential hostile takeover.

The next day, Musk tweeted “Love Me Tender,” suggesting he may make a tender offer to buy shares directly from Twitter shareholders.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.