Elon Musk has already agreed to a Twitter takeover or has made a binding offer. But the Tesla and SpaceX boss is apparently trying to squeeze out of this deal. Because Musk now mentions three reasons that stand in the way of a takeover.
First things first: Experts are sure the 50-year-old has no chance of reversing the $44 billion purchase — even as he keeps giving new reasons why he thinks he can’t go through with the deal. At an event hosted by business portal Bloomberg, Musk said today (via CNBC) that there are three “unresolved questions” that must be resolved before the deal can go through as agreed.
Bots, money, shareholders
The first reason is well known and has been a topic for the past few weeks: the fake accounts on Twitter. Officially, Twitter claims that about five percent of all accounts are fake, but Musk is questioning that. He says that number “probably doesn’t reflect most people’s experience of using Twitter.”
Musk critics, however, point out that Musk – who is a heavy user himself – must have known before the deal that fake accounts were a big problem. Musk on the current state of affairs: “We are still waiting for a solution to this case and this is a very important matter” The second open question concerns the financing, more specifically the part of the debt that is needed for this. Because although Musk pays $44 billion for Twitter, ‘only’ $33 billion comes out of his own pocket.
More than seven billion dollars will come from investors, the rest will have to be supplied by banks – and that is of course uncertain. Finally, according to Musk, it is still unclear whether shareholders will approve the deal at all. Musk apparently does everything he can to avoid approval, but is still surprised: “Does the debt part of the round come together? And then do the shareholders agree?
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