Elon Musk stated three primary goals. “unresolved matters”Before his $44 Billion buyout of Twitter can proceed, it must be resolved.
CNBC reports that Tesla CEO Elon Musk has stated that three main issues are currently preventing his $44 billion acquisition of Twitter from going ahead. Breitbart News previously reported that Musk’s efforts to gain financing from outside investors to limit his cash contribution towards his $44 billion acquisition of Twitter have been put on hold due to the uncertainty surrounding the deal.
Musk threatened to cancel the agreement if it failed to prove that bots and spam accounts make up less then five percent of the company’s user base. Earlier this month, Musk’s lawyers sent a letter to Twitter warning that he may walk away from the deal if the appropriate information is not provided. After Musk raised concerns over the amount of bot or fake accounts that were on Twitter, Twitter granted Musk access to its internal information.
Musk could be subject to a $1 million breakup fee if he decides not to sign the agreement. Musk was at Bloomberg’s event to discuss the “unresolved matters,”The deal is currently being stalled.
Musk has concerns about the number of fake accounts that are being created on Twitter. Twitter claims that there are less spam or false accounts than five percent on its platform. “monetizable”Daily active users But Musk is skeptical, stating that it’s “probably not most people’s experience when using Twitter.”He also added: “We’re still awaiting a resolution on that matter, and that is a very significant matter.”
Musk’s second problem is financing the debt. Musk has already committed to paying $33.5 billion cash and received $7.1 million equity financing commitments, which were made by investors including Larry Ellison, co-founder of Oracle. Musk claims that the rest of funding will be provided by bank loans. However, this is still uncertain.
Despite being the world’s richest person, much of Musk’s wealth is linked to Tesla stock, which has been underperforming in recent months. Musk has pledged millions of Tesla shares to be collateral for loans and sold them. Breitbart News reports that Tesla shares fell by 49% from their November peak.
Finally, Musk needs to get approval from Twitter shareholders for the acquisition of Twitter to proceed. Although investors are likely to vote on the deal by July or August (or both), it remains to be seen if Musk receives enough support for the transaction to move forward.
“Will the debt portion of the round come together? And then will the shareholders vote in favor?”Musk made these comments during Bloomberg’s event. These problems, as well as spam accounts, were discussed during the Bloomberg event. “the three things that need to be resolved before the transaction can complete,”Musk.
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