Elon Musk says there are 3 outstanding items that must be addressed before his offer to buyout Twitter can be completed.
Billionaire Elon Musk offered to buyout social media giant Twitter for $44 billion. However, the purchase ran into a wall when it was discovered that the amount of bots or fake accounts or users on the platform may have been largely understated by Twitter. This issue didn’t just impact this deal, it suggests that Twitter has misrepresented its reporting for years which would have major consequences with the SEC and stakeholders, if true.
Yesterday, Musk was on Bloomberg where he shared his concerns about his buyout offer after learning of the number of bots that really exist on the platform.
Elon Musk says there are three main hurdles to overcome before he can complete his purchase of Twitter.
Musk is seeking to buy Twitter for $44 billion, a mega acquisition with huge implications for the social media world — not least given the Tesla and SpaceX CEO’s contentious stance on content moderation and freedom of speech.
But the fate of the deal has become more uncertain in recent weeks after Musk threatened to walk away, citing concerns over the number of fake accounts on the platform. The billionaire could face a $1 billion breakup fee and possibly even lawsuits if he were to abandon the deal.Speaking at an event hosted by Bloomberg Tuesday, Musk said there were a number of “unresolved matters” that will need solving before he can move forward with the takeover.
The 3 items are:
1. The main item is the actual number of bots reported by the social platform. The company says its less than 5% while Musk and others expect it is much higher. This has to be addressed.
2. Financing is an issue. Musk shared that a large percent of the purchase would be in loans that apparently are still in the making.
3. The Twitter stockholders would have to approve the deal. This is no small task as well.
We’ll see what happens but at least one expert we communicated with said the current deal has zero percent chance of closing with its current structure. The expected deadline for the deal is July or August. We’ll see what happens next.
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