Elon Musk outlines $44 Billion Twitter bid status as Board urges stakeholders to approve the takeover.
Elon Musk listed the three outstanding difficulties on Tuesday, June 21 and they must be overcome before his $44 billion acquisition of Twitter can be completed.
In the meantime, Musk’s Twitter acquisition was supported by the Twitter Board in a draft proxy statement it filed.
At the Qatar Economic Forum in Doha, the Tesla CEO recently had a few conversations with John Micklethwait, Editor-in-Chief of Bloomberg News.
Micklethwait started off by questioning Elon Musk about the $44 billion Twitter acquisition right away.
Musk claimed there was a limit to how much information about the Twitter transaction he could make public. But before the $44 billion agreement is signed, he listed three problems that needed to be handled.
First, the problem of fake and spam users in the system is still being worked on by the two parties. According to Twitter, fewer than 5% of users are fraudulent or spam accounts.
Due to the allegation, Musk placed the agreement on hold and requested data from Twitter to back up its estimates of spam and fraudulent accounts.
Earlier last month, Twitter complied with Elon Musk’s request for bot data.
Last week, the Tesla CEO participated in a virtual discussion with Twitter employees, giving a signal that the deal is progressing.
Musk responded to inquiries concerning the buyout, particularly the modifications that will be made following the acquisition, throughout the discussion.
“And then of course, there is the question of will the debt portion of the round come together and then will the shareholders vote in favor [of the deal],” said Elon Musk, outlining the other two issues that need to be resolved before the deal is finalized.
Regarding Musk’s $44B deal, the Twitter Board recently submitted a proxy statement to the Securities and Exchange Commission.
The petition states that shareholders would be asked to vote on and approve Musk’s purchase of Twitter at a subsequent special meeting.
Shareholders will be entitled to $54.20 in cash, free of interest and subject to any necessary withholding taxes, if the Twitter transaction is approved.