Twitter-Musk deal contains $1 billion termination price, submitting says

Elon Musk must pay Twitter Inc a price of $1 billion if the billionaire terminates his $44 billion money deal for the social media firm, it stated in a submitting on Tuesday.

One of the circumstances for Musk’s fee is that if the deal falls via as a result of the fairness, debt and or margin mortgage financing wanted isn’t funded, the submitting stated.

Twitter stated on Monday that Musk had secured $25.5 billion of debt and margin mortgage financing and is offering a $21 billion fairness dedication.

Twitter, which is topic to “no-shop” restrictions, must pay the identical termination price beneath specified circumstances, the submitting stated.

The submitting additionally disclosed that the deal may very well be terminated if not closed by Oct. 24. The date may very well be prolonged for an additional six months to satisfy sure closing circumstances corresponding to antitrust and international funding clearances.

Musk, who can be the chief govt of electric-car maker Tesla Inc, clinched a deal to purchase Twitter on Monday in a transaction that may shift management of the social media platform populated by tens of millions of customers and international leaders to the world’s richest particular person.