Apollo Global Management Inc and Sixth Street Partners, seeking to provide financing to Elon Musk earlier this year for his proposed $44 billion purchase of Twitter Inc, are no longer in talks with the billionaire businessman, according to two familiar sources with the matter. the case.
Earlier this year, Apollo was in talks to provide preferred equity financing for the deal, along with Sixth Street, sources previously told Reuters.
Apollo, Sixth Street and other investors were looking to commit over $1 billion in financing for the deal.
Those talks ended months ago, around when Musk started having second thoughts about going through with the deal, the sources cited above said. Musk initially proposed the buyout in April before backtracking in July and then changing course again this week.
Musk and Twitter are currently attempting to reach an agreement after months of litigation that damaged Twitter’s brand and fed Musk’s reputation for erratic behaviour.
Twitter and Musk did not immediately respond to requests for comment, while Apollo and Sixth Street declined to comment.
Musk’s U-turn on buying Twitter could not have come at a worse time for the banks funding a large portion of the $44 billion deal. Reuters reported on Tuesday they could be facing significant losses due to an unfavourable financing environment.
Musk is expected to contribute much of the $44 billion through his raised funds by selling his stake in electric vehicle maker Tesla Inc and relying on equity financing from big investors. Central banks are committed to providing $12.5 billion in debt financing.