Report: Elon Musk’s Twitter Financing Deal on Hold Due to Uncertainty

Tesla CEO Elon Musk’s deal to gain financing to limit his cash investment in his $44 billion acquisition of Twitter has reportedly been put on hold due to uncertainty around the deal.

Reuters reports that Tesla CEO Elon Musk’s efforts to gain financing from outside investors to limit his cash contribution towards his $44 billion acquisition of Twitter have been put on hold due to the uncertainty surrounding the deal.

Musk has repeatedly threatened to walk away from the deal if the company fails to back up its claims that spam accounts and bots make up less than five percent of its user base. On Monday, Musk’s lawyers sent a letter to Twitter warning that he may walk away from the deal if the appropriate information is not provided.

Breitbart News reporter Alana Mastrangelo reported:

“Mr. Musk is not required to explain his rationale for requesting the data, nor submit to the new conditions the company has attempted to impose on his contractual right to the requested data,” Musk’s lawyer Mike Ringler said in a letter to Twitter Chief Legal Officer Vijaya Gadde.

“At this point, Mr. Musk believes Twitter is transparently refusing to comply with its obligations under the merger agreement,” Ringler added.

Ringler went on to say that “based on Twitter’s behavior to date,” Musk “believes the company is actively resisting and thwarting his information rights (and the company’s corresponding obligations) under the merger agreement.”

“This is a clear material breach of Twitter’s obligations under the merger agreement and Mr. Musk reserves all rights resulting therefrom, including his right not to consummate the transaction and his right to terminate the merger agreement,” Ringler said.

Musk must reportedly pull together $33.5 billion in cash to fund the deal after arranging debt financing to cover the rest of the $44 billion acquisition. Musk’s wealth is largely tied up in shares of Tesla, which leaves his wealth valued at approximately $218 billion, according to Forbes.

Musk was previously in talks with a number of private equity firms led by Apollo Global Management Inc. to provide $2 to $3 billion in preferred equity financing. These discussions are now reportedly on hold until more clarity is provided on the deal.

Read more at Reuters here.

Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan or contact via secure email at the address lucasnolan@protonmail.com