Here is why Elon Musk's  Twitter deal is on hold

Elon Musk said that there are three major challenges to overcome before he purchases Twitter.

This happened on same day when in an SEC filing, Twitter's board recommended shareholders that the merger agreement are in the best interests of Twitter and its stockholders.

Musk is attempting to purchase Twitter for $44 billion, a massive acquisition with some implications for the social media world.

The deal's future has become more uncertain in recent weeks, because Musk threatening to walk away due to concerns about the number of fake accounts on the platform.

If he quits the deal, he could suffer a loss of $1 billion as breakup fee and possibly even lawsuits.

Speaking at a Bloomberg event on Tuesday, Musk stated that there are a number of "unresolved matters" that must be resolved before he can proceed to  buy Twitter.

His concerns is about the number of fake accounts on Twitter. These days social media platforms can easily be manipulated with fake accounts and bots.

Musk says he wants full clarity from Twitter on how many of its users are real.

The second major issue is  debt financing.

Musk promised to pay $33.5 billion in cash and   $7.1 billion in equity financing from investors like Oracle co-founder Larry Ellison and the crypto exchange Binance.

The last issue that is stopping Musk to complete his deal with  Twitter is approval from  shareholders. Investors will vote on the deal by late July or early August.