According to CNBC’s David Faber, “it seems unlikely” that anyone else will step in to buy Twitter and take it private, meaning Twitter will either accept Musk’s offer or nothing happens.
“The more I report, the less I believe that anyone else could really show up here,” Faber said Tuesday on CNBC’s “Squawk on the Street.” CNBC’s Faber and Jim Cramer also agreed that Disney, Salesforce and Snap are not interested.
“So, Elon Musk, it’s all yours. They’re just figuring out if you can pay what they’re asking you to do, which probably starts with a six,” Faber said. Musk offered to acquire Twitter for $54.20 per share, or about $43 billion.
Although reports have suggested a private equity firm Thoma Bravo may be interested in an offer for Twitter, Faber said the returns “do not work”. Fellow private equity firm Apollo isn’t interested in joining a private equity consortium to acquire the social media company, according to sources, who asked not to be named because discussions are private.
While Musk ranks as the richest man alive, much of his wealth is tied up in Tesla stock, meaning he would likely have to either sell stock or borrow money to fund the deal.
“Yes, he can, we know that,” said Faber. “But how will he do that? Will he really choose to risk so much of his wealth?”
“Private equity isn’t real. It’s all marketing,” Faber said.
Analysts at Gordon Haskett Research Advisors wrote in a note Tuesday that the Wall Street Journal report, which revealed for the first time that Apollo is considering embarking on a Twitter deal, “didn’t impress us much, mainly because we’re the most of the usual suspects, including Apollo, are updating their models.”
But analysts said Apollo could potentially help a company like Thoma Bravo get its funding, noting that it “has played a similar role in a few other Bravo deals.”
Apollo and Thoma Bravo did not immediately respond to CNBC’s requests for comment.
CNBC’s Alex Sherman contributed to this report.
WATCH: Apollo may participate in Twitter deal as lender