After a dispute about fake profiles
Musk’s Twitter funding is said to be on hold
06/07/2022, 11:23 p.m
Does Elon Musk still want Twitter? At the moment, the potential buyer is arguing with the company about the number of spam accounts on the platform. That is why he is said to have just parked the question of financing.
According to insiders, Elon Musk’s efforts to refinance the planned multi-billion takeover of Twitter are on hold. The reason for this is uncertainty about the transaction after renewed threats from Musk, said people familiar with the matter.
The Tesla boss wants to use new financing to reduce his cash share in the approximately $ 44 billion takeover. Musk and Twitter were initially unavailable for comment. Musk originally planned to fund the Twitter acquisition with loans backed by his shares. After the Tesla share price had dropped significantly, he wanted to get more investors on board.
Musk had recently threatened to withdraw from his planned Twitter takeover. A letter from his lawyers released on Monday said Twitter had “clearly breached” its obligations. Musk wants accurate data on the proportion of fake Twitter accounts before making the purchase. According to the short message service, the number is less than five percent, while Musk assumes at least a fifth of users.
According to the “Handelsblatt”, both Musk and Twitter could withdraw from the planned deal at a comparatively low cost. In the event of a unilateral termination of the deal, a penalty payment of one billion dollars has been agreed. According to the newspaper, Musk could possibly get out of the contract for free if the proportion of spam accounts was well over five percent.