Sunday, June 26, 2022

Elon Musk procrastinating again? Tesla CEO speaks of “unresolved matters” after Twitter endorsed a $44 billion takeover

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Musk’s Twitter offering is currently “temporarily suspended” since May 13, here’s why

Elon Musk, appearing virtually at the Qatar Economic Forum in Doha, Qatar on June 21, spoke about his recent bid to take over Twitter and the issues surrounding the social media platform, including the number of spam Users in the system and the merger of Twitter debt share of the deal.

The chief executive officer of Tesla Inc., wearing a white shirt and gray suit, saw him mention some unresolved issues and how he is still waiting for a solution, how many spam, in an interview with John Micklethwait, editor-in-chief of Bloomberg News -Bots – automated accounts rather than humans – exist on the social media platform. “The transaction cannot be completed until this issue is resolved and the transaction is approved by shareholders,” Musk said. He added by saying: “There is a limit to what I can say publicly. It’s quite a delicate matter.”

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Musk’s week-long delay since May 13 has led many to speculate that he is attempting to roll over the deal due to broader market instability, about which the Tesla CEO has repeatedly raised concerns. “At some point, a recession is inevitable. I think it’s more likely than not that there will be a recession in the short term. It’s not a certainty, but it seems more likely than not,” he told attendees. In early May, Musk said a recession would be good for the US economy and that bankruptcies needed to happen.

At the event, he also spoke about his plans to lay off some of Tesla’s workforce due to his “super bad feeling” about the economy, saying the automaker will be shedding about 10 percent of its “salaried workforce,” which is actually the Fall is really only 3 percent, 3.5 percent less staff and not great material.”

On the flip side, Twitter’s board of directors has unanimously recommended that shareholders approve the company’s proposed $44 billion sale to billionaire Tesla CEO Elon Musk, according to a June 21 regulatory filing, according to ABC . Twitter’s shares are well below the $54.20 per share Musk offered to pay. The company’s shares last touched this level on April 5, when they offered Musk a seat on the board, before he offered to buy Twitter. In a filing with the U.S. Securities and Exchange Commission, Twitter’s board of directors said, “It unanimously recommends that you vote to accept the merger agreement.” Investors will reportedly make a profit if the transaction is completed by $15.22 for every share they own.

– The CEO wants more clarity from Twitter about how many of its users are real. Public disclosures from Twitter show that the number of fake accounts accounts for less than 5 percent of monetizable daily active users. However, Musk doubts the number, saying, “It’s probably not most people’s experience when they use Twitter.” Adding, “We’re still waiting for a resolution on this matter, and it’s a very important matter.” “

– The second hurdle is the debt required for financing. Musk announced in May that he would pay $33.5 billion in cash. He has also received $7.1 billion in equity funding commitments from investors including Oracle co-founder Larry Ellison and crypto exchange Binance. He said the rest of the funding will come in the form of bank loans. Despite being the richest person in the world, his wealth is tied up in Tesla stock.

– And the last one is the approval of Twitter shareholders. Investors are expected to vote on the deal in late July or early August. Whether Musk will get enough support for the buyout is not yet clear. In May, some Twitter shareholders sued Musk and the company itself over the messy handling of the process.

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