Elon Musk believes 3 issues must be resolved before buying Twitter.
Musk threatened to walk away from the transaction, blaming bogus accounts.
Elon Musk says he needs to get past three main problems before he can finish buying Twitter.
Musk wants to buy Twitter for $44 billion. This is a huge deal that would have huge effects on the social media world, especially given Musk's controversial views on content moderation and freedom of speech.
But the deal's future has become less clear in the past few weeks, after Musk said he might leave because he was worried about the number of fake accounts on the platform. If the billionaire backs out of the deal, he could have to pay a $1 billion fee and could even be sued.
Musk said at a Bloomberg event on Tuesday that there are a number of "unresolved matters" that need to be taken care of before he can move forward with the takeover.
1. Imitation accounts
Musk hasn't been quiet about how worried he is about the number of fake Twitter accounts. It's not new for fake accounts and bots to be used to try to control social media platforms, but Musk says he wants Twitter to be more clear about how many of its users are real.
Twitter has told the public that less than 5% of its "monetizable" daily active users are fake or spam accounts. Musk isn't sure. On Tuesday, he said, "It's probably not what most Twitter users experience."
"We're still waiting for an answer on that," he said. "It's a very important question."
Twitter's independent board chair, Bret Taylor, said last week that the company's management was still "committed to the transaction under the agreed-upon terms."
2. Financing with debt
Musk says that the amount of debt needed to pay for the Twitter deal is the second biggest problem with it.
Musk said in May that he would buy the company for $33.5 billion in cash. He has also gotten $7.1 billion in equity financing commitments from investors like Oracle co-founder Larry Ellison and the cryptocurrency exchange Binance.
Musk says that the rest of the money will come from bank loans, but it's still not clear how this will work out. Even though Musk is the richest person in the world, a lot of his money is tied to Tesla stock. He has sold and put up as collateral for the loans billions of dollars in Tesla shares.
3. Shareholder approval
The last thing Musk needs is for Twitter's shareholders to agree to his purchase. Investors should vote on the deal at the end of July or the beginning of August.
It's still not clear if Musk will get enough support for the buyout or not. Some Twitter shareholders sued Musk and the company itself last month because of how the process was handled.
"Will the part of the round that has to do with debt come together? Then, will the shareholders approve?" Musk said Tuesday.
Together with the problem of fake accounts, he said, these are "the three things that need to be fixed before the transaction can be completed."