In case of completion of the transaction, Elon Musk will receive 100% of the company’s shares.
Elon Musk will have to pay a $1 billion penalty if he decides to withdraw from the deal to buy the social network Twitter.
The size of the transaction is $ 44 billion. According to the terms of the agreement, which became known on Tuesday, this may happen if the billionaire is unable to find sufficient funds for the acquisition of Twitter, including the purchase of shares, existing debt and financial obligations of the company. Twitter reported on Monday that Musk has already received $25.5 billion in loan financing.
In case of withdrawal from the transaction, Twitter will be obliged to pay the same penalty.
According to the terms of the agreement, the deal can be terminated if it is not closed by October 24. This period can be extended for another six months to meet certain conditions, such as obtaining the necessary permits from various federal regulators.
Upon completion of the transaction, Twitter should turn into a company where 100% of the shares will belong to Elon Musk.