Following Elon Musk’s $43 Billion Offer, Apollo Global Shows Interest in Twitter

Mandatory Credit: Photo by Rafael Henrique/SOPA Images/Shutterstock (12376302j)In this photo illustration the Twitter logo seen displayed on a smartphone.
Rafael Henrique/SOPA Images/Shutterstock / Rafael Henrique/SOPA Images/Shutterstock

Private equity giant Apollo Global Management is reportedly interested in making a bid for Twitter in the wake of Tesla CEO Elon Musk’s $43 billion offer.

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Apollo has held discussions about backing a possible deal for Twitter and could provide Musk or another bidder — such as private-equity firm Thoma Bravo LP — with equity or debt to support an offer, The Wall Street Journal reported. However, CNBC reported that Apollo isn’t interested in being part of a private equity consortium that would acquire the social media company, and that any financing Apollo provides would likely come in the form of preferred equity. 

Apollo, which has roughly $500 billion of assets under management and owns Yahoo, has also been evaluating potential cooperation between the online-media company and Twitter, The Wall Street Journal added.  

Twitter is expected to reject Musk’s offer in the coming days, and a more detailed stance on the matter is expected on April 28, when the company is set to report earnings. Twitter was up 7.5% on April 18 and was up 0.1% in pre-market trading on April 19.

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In an anticipated move, on April 15, Twitter’s board adopted a “poison pill” to counter Elon Musk’s bid for the social media platform — a “rights plan” intended to “enable all shareholders to realize the full value of their investment in Twitter.”

But while Twitter’s move was expected, Musk’s reply is less so. Some analysts have laid out the potential routes he now might take in what they call the “MMA battle for Twitter” — one that will become “a game of high stakes poker,” as GOBankingRates previously reported.

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The richest man on the planet had offered to buy Twitter on April 14 for $54.20 per share in cash, “a 54% premium over the day before I began investing in Twitter and a 38% premium over the day before my investment was publicly announced,” according to a note included in a filing with the Securities and Exchange Commission (SEC).

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About the Author

Yaël Bizouati-Kennedy is a full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She also worked as a vice president/senior content writer for major NYC-based financial companies, including New York Life and MSCI. Yaël is now freelancing and most recently, she co-authored  the book “Blockchain for Medical Research: Accelerating Trust in Healthcare,” with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in Journalism from New York University and one in Russian Studies from Université Toulouse-Jean Jaurès, France.

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