Elon Musk will have to pay Twitter a fee of $1 billion (roughly Rs. 7,665 crore) if the billionaire terminates his $44 billion (roughly Rs. 3,37,440 crore) 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 (roughly Rs. 1,95,440 crore) of debt and margin loan financing and is providing a $21 billion (roughly Rs. 1,60,975 crore) 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 October 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, 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.
© Thomson Reuters 2022
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