The New York Post reports the richest man in the world is looking to do a leveraged buyout (LBO) as a possible way to finance his bid to purchase 100% of Twitter Inc (NYSE:TWTR).
What Happened: While Musk is worth north of $270 billion, the Post reports that the Tesla Inc (NASDAQ:TSLA) chief is seeking financing through an LBO that would use a significant amount of borrowed money to meet the cost of acquisition, raising the debt against the company.
While Musk said his bid of $54.20 per share was his “best and final” offer, the billionaire walked back on the statement saying he would consider borrowing against his current stake if necessary and is willing to invest an additional $10 to $15 billion of his own money to take the company private, of which he already owns 9.1%.
The free-speech advocate must rely on private equity to finance the remainder of the costs, and he may have found a suitor.
Apollo Global Management is interested in financing the deal for Musk, according to The Wall Street Journal.
Related Link: Apollo Global Ready To Team Up With Elon Musk For Twitter Bid: Report
Why It Matters: “Love Me Tender” is a hit single by Elvis Presley, but it is also what Musk tweeted, alluding to the fact he may have already found a partner and will enter a tender offer for Twitter in the next 10 days.
Twitter’s annual meeting will take place on May 25; it is unclear if the bid will be accepted or rejected by that date.
TWTR Price Action: According to Benzinga Pro, Twitter shares fell into the close on Tuesday, dropping 4.73% to $46.16.
See Also: Analysis: Will The Real Elon Musk Please Stand Up?
Photo: Gerd Altmann from Pixabay
