Elon Musk will owe Twitter $1 billion if he can’t secure financing
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Photo illustration of Elon Musk Twitter on a phone screen. Background is Chania, Crete Island. Greece. April 23, 2022.
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Elon Musk, SpaceX CEO and TeslaAccording to Twitter, Musk could need to pay $1B in termination fees to Twitter under certain conditions, like if he fails to raise enough money to finance his purchase of the company for $44 billion. a new SEC filing.
You can find the file (Parent refers the special corporation Musk established to acquire Twitter)
Parent is required to pay Twitter $1.0 million in termination fees if Acquisition Sub fails to comply with the Merger Agreement’s conditions.
On the other hand, TwitterElon Musk will owe $1 billion to him for the break-up fee in case it falls through due to it finding a competitor offer or if shareholders reject it according to the same filing.
Musk suggested that he buy the company for $54.20 per share, and then make it public. Musk stated that Twitter should be a virtual public square open to all viewpoints.
WATCH: What does Elon Musk’s Twitter buyout mean for free speech?
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