Twitter-Musk deal includes $1 billion termination fee – filing
Elon Musk will have to pay Twitter Inc a $1 billion fee if the billionaire ends his $44 billion cash deal for the social media company, he said in a filing on Tuesday.
One of the conditions of Musk’s payment is that the deal fail because the necessary equity, debt and/or margin loan financing is not funded, the filing says. Twitter said Monday that Musk had secured $25.5 billion in debt and margin loan financing and provided an equity commitment of $21 billion.
Twitter, which is subject to “no store” restrictions, will have to pay the same termination fee under specific circumstances, according to the filing. The filing also revealed that the deal could be terminated if it is not completed by October 24. The date could be extended for an additional six months to meet certain closing conditions such as antitrust and foreign investment clearances.
Musk, who is also the chief executive of electric car maker Tesla Inc, reached an agreement to buy Twitter on Monday in a deal that will transfer control of the social media platform populated by millions of users and from world leaders to the richest person in the world.
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