Elon Musk Twitter: Is Elon Musks Twitter deal still going ahead? Tesla CEOs obstacles

Elon Musk: Twitter will be as inclusive as possible

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Elon Musk appears to have hit a roadblock in his race to acquire Twitter. The Tesla and SpaceX CEO, despite receiving an avalanche of support from the site’s users, has encountered issues with his own finances and those currently running the platform. Confidence is now wavering as to whether his generous $44 billion takeover bid can pass the new hurdles.

Is Elon Musk’s Twitter deal still going ahead?

Elon Musk, the “free speech absolutist”, has seen his image drastically altered in the months since he announced his Twitter deal as people have become increasingly disaffected with the tech billionaire.

His Twitter deal is also on the brink, as Mr Musk must now raise more cash to finance the $44 billion takeover.

He has reportedly ditched a $6.25 billion margin loan commitment tied to his Tesla shares to lapse and, according to the Financial Times, is now pursuing an equity sum in the 11-figure range.

Regulatory filings posted on May 25 show he needs an additional $33.5 billion.

His answer may lie with Twitter’s existing shareholders, who hold equity stakes that prop up the deal’s value.

The amount of money he needs to back up his purchase would decrease if they rolled over these stakes.

Some investors have recently launched a legal suit against Mr Musk, accusing him of failing to disclose his Twitter stake.

He purchased 5 percent of the site’s stock on March 14 and later increased his share to 9.2 percent.

But he did not reveal his cumulative ownership until early April, a move some investors believe saved him up to $156 million.

Investors led by Virginia resident William Heresniak alleged in a lawsuit filed to the San Francisco federal court on May 25 that a drop in Tesla stock following news of the acquisition put his ability to follow through in “major peril”.

On May 26, Tesla shares were trading at roughly $700, down from highs of $1,000 in April.

Mr Musk appears not to have dropped his pursuit of Twitter just yet, as he remains highly active on the platform, where he has discussed his deal.

In a recent post, he outlined how he would choose to “direct” the site under his ownership.

He wrote: “If I were to own Twitter, it would be geared towards the middle 80 percent of the population, so technically the far left and far right would probably be dissatisfied.”

Mr Musk had previously threatened to place the deal on hold as he pursued Twitter for figures showing the number of fake and spam accounts on the platform.

He has argued – without presenting evidence for his claims – that there were too many “spam bots” to allow the deal to proceed.

Choosing to walk away or unilaterally suspend the deal – which he cannot do unilaterally – would trigger legal consequences.

Twitter could leave him with a $1 billion breakup fee or litigate to force him to follow through.

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