July 6, 2022

Elon Musk will owe Twitter a billion dollars if it can't secure funding

Elon Musk will owe Twitter a billion dollars if it can’t secure funding

In this photo illustration, Elon Musk Twitter is seen on a smartphone screen with the Twitter logo in the background in Chania, Crete, Greece on April 23, 2022.

Nicholas Kokovelis | Norfoto | Getty Images

Elon Musk, CEO of SpaceX and Teslamay be required to pay a $1 billion termination fee to Twitter, under some circumstances, such as if Musk fails to secure sufficient debt financing to complete his $44 billion deal to buy the company, according to New SEC file.

From the recording (Parent is referring to Musk’s own company created to buy Twitter):

As described above, if the conditions for the obligations of the parent and subsidiary companies of the acquisition are met to complete the merger and the parent company fails to complete the merger as required by the merger agreement, including due to non-equity, debt and/or margin loan financing, it will be required to The guardian is required to pay Twitter a termination fee of $1.0 billion.

On the other hand, Twitter Elon Musk will owe a $1 billion breakup fee if he goes down because he found a competing offer or if shareholders turn the deal down. According to the same deposit.

Musk offered to buy the company at $54.20 a share and make it private. He said Twitter should act as a digital public sphere that tolerates different viewpoints.

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