Twitter-Musk Deal lncludes $1 billion Termination Fee

Elon Musk will have to pay Twitter Inc a fee of $1 billion if the billionaire terminates his $44 billion cash deal for the social media company, it said in a filing on Tuesday.

One of the conditions for Musk’s payment is if the deal falls through because the equity, debt and or margin loan financing needed is not funded, the filing said.

Twitter said on Monday that Musk had secured $25.5 billion of debt and margin loan financing and is providing a $21 billion equity commitment.

Twitter, which is subject to “no-shop” restrictions, will have to pay the same termination fee under specified circumstances, the filing said.

The filing also disclosed that the deal could be terminated if not closed by Oct. 24. The date could be extended for another 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, clinched a deal to buy Twitter on Monday in a transaction that will shift control of the social media platform populated by millions of users and global leaders to the world’s richest person.

Reuters

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