Apollo Circling Over Twitter Deal With Musk

Apollo Global Management Inc. is considering participating in a bid for Twitter Inc., according to The Wall Street Journal citing people familiar with the matter, after Elon Musk’s $43 billion bid put the social-media company in play.

Apollo, one of the world’s largest buyout firms, has held discussions about backing a possible deal for Twitter and could provide Musk or another bidder like private-equity firm Thoma Bravo LP with equity or debt to support an offer, the people said.

Apollo, which owns Yahoo and Cox Media Group, has also been evaluating potential cooperation between the online-media company and Twitter, the people said. There is no guarantee Twitter would be receptive to that, or any other deal.

Twitter is expected to rebuff Mr. Musk’s offer in the coming days, some of the people said. The company is set to report earnings April 28 and may detail its stance then.

Either way, Apollo’s interest adds to a list of Wall Street heavyweights, including Morgan Stanley, lined up to support a deal for Twitter, which despite the popularity of its platform has struggled to grow.

There is no guarantee any private-equity firm will end up making a firm bid, whether for the entire company or just a portion, and there may well be no deal in the end—with Mr. Musk or anyone else.

Taking Twitter private would rank as one of the largest leveraged buyouts of all time, and the company doesn’t have the attributes of a typical LBO target like strong, stable cash flow.

New York-based Apollo is a private-equity and lending behemoth with roughly $500 billion under management, known for buying companies in a range of sectors including media and for its big insurance arm. The firm often invests across a company’s capital structure, providing preferred equity or debt, in addition to doing straightforward buyouts.

Meanwhile, Mr. Musk has continued trolling Twitter on its own platform. On Saturday, he tweeted, “Love Me Tender” with music note emojis, in an apparent reference to Elvis Presley’s hit song. Many viewed it as Mr. Musk signaling his intent to launch a direct appeal to Twitter’s shareholders in the form of a tender offer. If he goes that route, shareholders would have the option to tender their shares at his offer price.