Pimco, Apollo eye $3bn of debt related to Musk’s X
Pimco and Apollo are among a cohort of private credit specialists considering a $3bn (£2.42bn) purchase of debt tied to the X social media platform.
It has been reported that a number of investment managers have expressed an interest in purchasing the debt package, although no deals have been finalised as of yet.
According to people with knowledge of the matter, potential investors are being offered a claim on X’s stake in xAI Corp – an artificial intelligence venture owned by Elon Musk, who also owns the X platform.
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X has a stake of approximately $6bn in xAI, although the value of this stake may have fallen following the recent crash in AI tech shares due to the launch of cheaper Chinese start-up DeepSeek.
More than $13bn of debt is believed to be tied to X, stemming from Musk’s $44bn purchase of the popular social media platform Twitter in 2022. He renamed the platform X in 2023.
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The deal was financed by seven banks including Morgan Stanley, Bank of America, Barclays and Mitsubishi UFJ Financial Group. These banks are now believed to be seeking to offload the debt in chunks.
A $1bn parcel of debt was recently sold to Diameter Capital Partners and Darsana Capital Partners, following a private offer.
Read more: Apollo continues infra push with new deal
