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Twitter slips as investors await Musk deal funding details | Social Media News

Investors are worried about financing the $44 billion buyout amid growing economic uncertainty.

Shares of Twitter Inc fell further from Elon Musk’s bid price on Thursday as investors fretted over funding for the social media company’s proposed $44 billion takeover.

Apollo Global Management Inc and Sixth Street Partners, who were seeking to fund the deal, are no longer in talks with the billionaire entrepreneur, two sources familiar with the matter told Reuters.

Shares of the microblogging site fell slightly to $51.12 after rising 20% ​​since Musk this week offered to continue his April offer of $54.20 per share to take Twitter private.

“There is still some uncertainty as to whether or not Elon can find the actual funding to close the deal,” said Randy Frederick, managing director of trading and derivatives at the Schwab Center.

Big banks that have pledged to fund $12.5 billion, or about 28% of the deal, could suffer heavy losses as the rapid pace of interest rate hikes has increased market volatility and dampened the appetite for leveraged finance.

Speculation has grown over whether Musk will sell more of his Tesla Inc stock to fund the deal. It has already raised $15.4 billion this year by selling shares in the electric vehicle maker.

“The funding will eventually come through one way or another,” said Robert Gilliland, managing director of Concenture Wealth Management. “It’s just a point of negotiation of the terms at this stage.”

Musk pledged to buy Twitter in April, but quickly soured. The social media company then went to court asking Musk to make the deal.

Musk and Twitter have agreed to postpone the billionaire’s scheduled Thursday deposition as they try to reach an agreement to end their litigation, a source told Reuters.

Tesla shares fell 2%.