Musk to Pay $1 Billion Termination Fee if Twitter Deal Falls Through

Elon Musk must pay Twitter a payment of $1 billion (roughly Rs. 7,665 crore) if the billionaire terminates his $44 billion (roughly Rs. 3,37,440 crore) money deal for the social media firm, it stated in a submitting on Tuesday.

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

Twitter stated on Monday that Musk had secured $25.5 billion (roughly Rs. 1,95,440 crore) of debt and margin mortgage financing and is offering a $21 billion (roughly Rs. 1,60,975 crore) fairness dedication.

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

The submitting additionally disclosed that the deal may very well be terminated if not closed by October 24. The date may very well be prolonged for one more six months to satisfy sure closing situations reminiscent of antitrust and overseas funding clearances.

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

© Thomson Reuters 2022