Twitter gains on report Apollo Global considering participating in offer

Apr. 18, 2022 4:25 PM ETTwitter, Inc. (TWTR), APOBy: Joshua Fineman, SA News Editor53 Comments

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Twitter (NYSE:TWTR) rose 1% in after hours trading on a report that private equity firm Apollo Global (NYSE:APO) is considering participating in a bid for Twitter.

Apollo is said to have had discussions about backing a potential deal for Twitter and could provide Elon Musk or another PE bidder with equity or debt for a a bid, according to a WSJ report, which cited people familiar. CNBC reporter Leslie Picker confirmed the possible Apollo participation, though said it would only be in a financing compacity.

Twitter (TWTR) is expected to officially reject Musk's $54.20/share offer in the coming days, the WSJ also reported. The social media platform is scheduled to report its earnings April 28 and may lay out its response at that time.

The WSJ report comes the NYPost reported late Thursday that Thoma Bravo is said to be working on a a possible rival bid for Twitter. The NYPost and other media outlets also reported separately that that Musk is said to be talking to investors who would partner with him on an offer for Twitter. One scenario would be for Musk to team up with private equity firm Silver Lake, which reportedly was going to co-invest with Musk when he was considering taking Tesla (TSLA) private in 2018.

Earlier Monday Wells Fargo analyst Brian Fitzgerald explained a case for private equity to pay $60-$65/share for Twitter in a potential deal, though he was cautious that a deal would happen. Wedbush analyst Dan Ives earlier said it's unlikely that Twitter would be bought by private equity, due to its business model and low free cash flow.

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