The world's richest man, Elon Musk, is open to buying one of the largest social media platforms. However, three things need to be settled.
Purchase still pending; Image: CNN
1. Fake Accounts
One important reason for Musk is the number of fake accounts on the platform. Public reports from Twitter itself say that less than five percent of all accounts are fake. Musk, however, has some concerns about this. Because the number of real accounts is an "important matter".
2. Debt
Musk is the richest person in the world, but his wealth is tied up in Tesla and SpaceX shares. Therefore, he will have to take out a loan and then pay it back with Tesla shares - so the whole deal remains tax-free.
$33.5 billion is expected to come from himself. The rest will come from other investors, such as Oracle co-founder Larry Ellison and crypto exchange Binance. So far, he has raised $7.1 billion.
3. Shareholder approval
Current Twitter shareholders have time to vote on this deal until the end of July or beginning of August. However, there is a negative tendency towards the deal, because Musk has already been accused of chaotic handling of the whole process.
Only when these three points are fulfilled, Elon Musk can finalize the deal. Otherwise, he will face a fine of one billion US dollars.
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