Private equity firm Apollo Global Management is considering taking part in a bid on Twitter by offering debt financing to potential buyers, including Tesla chief executive Elon Musk, a person with knowledge of the situation said.
No decisions have been made yet, says the person, who requested anonymity because the conversations were confidential.
The Wall Street Journal earlier reported Apollo’s possible participation in a bid.
Mr. Musk, the world’s richest man who also heads the rocket maker SpaceX, made an offer of about $40 billion last week to buy Twitter. Mr. Musk, whose wealth is largely in stock, did not provide details on the financing of such a deal.
Investors have been skeptical that he would be able to raise the money 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 more than 9 percent stake in the company.
Last week, Twitter announced it was using a method called a “poison pill,” which would make it significantly more difficult for Mr. Musk to acquire more than 15 percent of the company. Twitter said the defensive maneuver wouldn’t stop the company from talking to 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 seems 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, seems undaunted. On Saturday, he tweeted the words “love me tenderly‘ alongside musical notes, an apparent reference to both the Elvis Presley ballad of the same name and a ‘tender offering’ in which Mr. Musk would make his offer directly to shareholders.
Apollo has experience in the media industry. Last year, it acquired AOL and Yahoo iafter a $5 billion deal.