Private equity may be set aside for additional donations to help break Twitter in the extended hand of millionaire Elon Musk.
A source familiar with the matter tells that Apollo Global Management (the parent company of Yahoo Finance) is analyzing options to provide potential subscribers with an agreement to keep Twitter private. The private equity powerhouse does not plan to buy Twitter directly, the source said.
"When it comes to private equity, we think $ 60 to $ 65 a bid is needed. That's $ 40 billion in equitable funding by check and $ 12 billion in debt to operate," Wells Fargo analyst Brian Fitzgerald told, referring to the amount of Twitter that can earn a good return on a private company.
Musk owns a 9.2% stake in Twitter, and offered to buy a social media platform for $ 54.20 a share last week. Musk believes the forum should not rely solely on advertising and better cool its content, among other original ideas from an unexpected perspective.
Fitzgerald believes that if the Twitter board could use Musk, it could find his price increased to "$ 50 high." But as expected, Twitter never welcomes a wealthy businessman.
Twitter has since developed a toxic pill to prevent Musk from getting more out of the company.
And now Wall Street is growing concerned that a war of attrition could hurt the sales of Twitter ads - and by increasing its ratings - in the future.
Veteran advertising veteran Sir Martin Sorrell believes Twitter has an important audience, and may not be overwhelmed by the war with Musk. But the outcome is far from certain.
"Yes, there are a few million followers on Twitter or Twitter users, average daily users. So an effective platform on a small scale. I doubt it will block it much in the short term. We'll see what happens," said S4 Capital founder.
