Elon Musk says 3 points need to be resolved before his Twitter buyout can Go-forward

elon musk three points Fake accounts. Debt financing. Shareholder approval

As we are all aware that Elon musk is going to buy Twitter. Elon Musk says 3 points need to be resolved before his Twitter buyout can Go-forward. Musk says there are three major obstacles to be overcome before he’s able to finish his acquisition of Twitter.

Musk is seeking to acquire Twitter at $44 billion and its news is coming from last month. This is a massive acquisition that could have enormous implications for the world of social media especially given the Tesla as well as SpaceX CEO’s controversial policy regarding content moderation as well as the right to free speech.

Image credit: Elon Musk & team

Musk is trying to get this social media so that he and other people can freely talk and no one can stop to give their opinion.

However, the future that the contract will be negotiated has been increasingly uncertain in recent months following the news that Musk has threatened to pull out in the wake of concerns about the volume of fake accounts that are on the site.

The billionaire musk may be subject to a breakup charge of $1 billion and, possibly, lawsuits in the event he decides to end the agreement.

In an interview at an event hosted by Bloomberg on Tuesday, Musk said there were many “unresolved matters” that will need to be resolved before he can proceed with the takeover.

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Elon Musk says 3 points need to be resolved before his Twitter buyout can Go-forward

  1. Fake accounts.
  2. Debt financing.
  3. Shareholder approval

Now we will explain all these points in detail and give Elon Musk’s opinion.

Elon Musk on Fake accounts

This is the main concern that Elon musk shows on Twitter buying. Musk has been open about of his worries about the sheer number of fake profiles on Twitter.

Attempts to alter social media platforms using bots and fake accounts aren’t all that new, but Musk insists he needs more information from Twitter regarding the percentage of its users who are real.

The public disclosures made by Twitter revealed that the number of fake or bogus accounts at lower than 5 percent of the “monetizable” daily active users. Musk is unsure. On Tuesday, he stated that this is “probably not most people’s experience when using Twitter.”

“We’re still awaiting a solution on that matter, and that is a very significant matter,” he added.

This week, Bret Taylor, Twitter’s independent board chair, stated that Twitter’s management was “committed to the transaction under the agreed-upon terms.”

So, this was the first point that Elon musk want to resolve before he buyout Twitter. Now we will explain the second point that is related to Debt financing.

Debt financing to Buy twitter is important- Elon Musk

The other obstacle that is preventing the Twitter transaction according to Elon Musk is the amount of debt needed to fund the transaction. Mean we all know that it is a $44 Billion deal and it is a huge amount.

He has to gain and arrange for investors to buy this social media platform

Musk in May announced that he would be paid $33.5 billion of cash to the company. Musk also has received $7.1 billion in equity financing from investors such as Oracle Co-founder Larry Ellison and the crypto exchange Binance.

Elon Musk declares that the rest of the funds will come from bank loans, however, the exact way the process will unfold is not clear. Although he is the world’s wealthiest person, a large portion of his fortune is tied to Tesla shares. Musk has pledged billions of Tesla shares to secure the loans, and this is a big move from the musk.

This was all about the second reason why Elon wants to solve the buyout Twitter. Now the third point is share holders’ approval and it is very important.

Shareholder approval to complete his acquisition

Shareholder approval is very important before he buyout the Twitter.
The last step for Musk to complete his acquisition is the approval of Twitter’s shareholders. Investors are expected to decide on the deal by late July or early August. And we hope that he will fulfill all the requirements.

The question of whether Musk will receive enough support to fund the purchase is not clear. In the last month, a few Twitter shareholders were suing Musk and the company for the erratic management of the transaction.

“Will the portion of the round involving debt get together? And then, do the shareholders be able to vote for it?” Musk said Tuesday.

This, as well as the problem of fake accounts as well as the issue of fake accounts – are “the three things that need to be resolved before the transaction can complete,” the official said.

So, that is what Elon Musk says 3 points need to be resolved before his Twitter buyout can Go-forward.

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Faqs

  1. What three points are stopping Elon musk to buy Twitter?

    Here are the three points, first Fake accounts, second Debt financing, and thirdly Shareholder approval. These points are the obstacles to buying Twitter, says Elon musk.

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