Wall Street Journal (WSJ) reported on the 18th (local time) that Morgan Stanley, a famous Wall Street investment bank as well as Apollo Global, a major asset manager on Wall Street, is considering participating in the Twitter acquisition.
Apollo Global and Morgan Stanley believe that Twitter is having difficulty growing even though it is the world’s most famous social media, and that stock prices could soar with a little help.
As a result, Tesla CEO Elon Musk is considering participating in the Twitter takeover battle, which declared a hostile takeover. They are expected to participate in the acquisition by providing funds to those who want to acquire Twitter, such as Musk.
Apollo Global owns Yahoo, a U.S. portal, and is one of the top five asset managers in the U.S.
Apollo Global seems to be considering taking part in the Twitter takeover battle, as securing a certain stake in Twitter can work with Yahoo, which it already owns, to maximize synergy.
New York-based Apollo Global is a private equity fund that operates about $500 billion. It holds shares in various companies including media, and also serves as an insurance company.
Morgan Stanley, a well-known Wall Street investment bank, is also considering jumping into the race to acquire Twitter, WSJ said.
Musk, who is attempting a hostile takeover bid for Twitter, has more than $250 billion in assets, the world’s richest man, but is short of cash as nearly all of his assets are tied up with Tesla and his unlisted rocket company SpaceX. Accordingly, Apollo or Morgan Stanley can provide Musk with cash.
Shortly after the news broke, Twitter shares rose 1.38% in after-hours trading. Earlier, Twitter closed 7.48 percent higher in regular trading.
This is because Twitter’s founder, Jack Dorsey, is taking Musk’s side, and Twitter’s acquisition battle is getting closer.
