Elon Musk says 3 issues need to be resolved before his Twitter buyout can go ahead
Musk says there are three main hindrances to overcome before he can complete his purchase of Twitter.
Musk who is seeking to buy Twitter for a whopping amount of $44 billion, with a stance on content moderation and freedom of speech is considering walking away over the number of fake accounts on the platform. He could also face up to $1billion breakup fee and a lawsuit.
He mentioned this know in an event hosted by Bloomberg that there are quite a number of “unresolved matters” that will need to be taking care of before his takeover.
Musk says he wants more clarity from Twitter on how many of its users are genuine. He also mentioned that Twitter places the number of false or spam accounts at less than 5% of its “monetizable” daily active users. He is however doubtful as he said on Tuesday, “probably not most people’s experience when using Twitter.”
According to him, “We’re still awaiting a resolution on that matter, and that is a very significant matter,” He stated.
Also, last week, Bret Taylor, Twitter’s independent board chair, assured that company management remained “committed to the transaction under the agreed upon terms. ”
The second unresolved matter facing the Twitter transaction according to Musk is the portion of debt required to finance it.
Musk in May was committed to paying $33.5 billion in cash for the company. He has also received $7.1 billion in equity financing commitments from investors including co-founder Larry Ellison and the crypto exchange Binance.
Musk says the remainder of the funding will come in the form of bank loans, but how exactly this will happen is uncertain.
Musk who is the world’s richest person has a host of his wealth tied up in Tesla stock. He however has sold and pledged billions in Tesla shares as collateral for the loans.
The third “unresolved matter” is his acquisition is approval from Twitter’s shareholders. Investors are however expected to vote on the deal in late July or early August.
According to Musk on Tuesday, “Will the debt portion of the round come together? And then will the shareholders vote in favor?”
Meanwhile, last month, some Twitter shareholders sued Musk itself over the problematic handling of the procedure.
These together with the issue of fake accounts “are three things that need to be resolved before the transaction can complete,” according to him.
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