According to a new CNBC report, billionaire Elon Musk says 3 issues need to be resolved before his Twitter buyout can go ahead.
Musk explained the “unresolved matters” Tuesday at an event hosted by Bloomberg.
The 3 “unresolved matters” are fake accounts on Twitter, debt financing, and shareholder approval.
Public disclosures from Twitter place the number of false or spam accounts at less than 5% of its “monetizable” daily active users. Musk is doubtful. On Tuesday, he said it’s “probably not most people’s experience when using Twitter.”
“We’re still awaiting a resolution on that matter, and that is a very significant matter,” he said.
The second major roadblock facing the Twitter transaction, according to Musk, is the portion of debt required to finance it.
Musk in May 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 Oracle 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 play out remains uncertain. Despite being the world’s richest person, much of Musk’s wealth is tied up in Tesla stock. He has sold and pledged billions in Tesla shares as collateral for the loans.
Musk said during the appearance “Will the debt portion of the round come together? And then will the shareholders vote in favor?”
Musk said this and the fake accounts are the “the three things that need to be resolved before the transaction can complete.”