Elon Musk Owes Twitter $1 Billion If He Can’t Get Funding


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

Nikolas Kokovlis | Nurfoto | Getty Images

SpaceX and Tesla CEO Elon Musk may be required to pay Twitter a $1 billion termination fee under certain circumstances, such as if Musk fails to secure sufficient debt financing to complete his $44 billion deal to buy the company. to buy, according to a new SEC filing.

From the filing (parent refers to the special company Musk created to buy Twitter):

As described above, if the conditions for the parent’s and the Acquisition Sub’s obligations to complete the merger are met and the parent does not complete the merger as required under the merger agreement, including because the equity financing , the debt and/or the margin loan has not been funded, The parent must pay Twitter a $1.0 billion termination fee.

On the other hand, Twitter owes Elon Musk a $1 billion breakup fee if it falls through because it found a competing offer or if shareholders reject the deal according to the same filing.

Musk offered to buy the company for $54.20 a share and take it privately. He said Twitter should operate as a digital public square that is tolerant of different points of view.

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