5 ms·
The $1b isn't a walkaway fee, it's a penalty if a 3rd party kills the deal They have a binding contract, there is no walking away without spending years in cou
by fooey 4y ago
The $1b isn't a walkaway fee, it's a penalty if a 3rd party kills the deal
They have a binding contract, there is no walking away without spending years in court
In that contract, Musk even agrees he cannot contest Twitter forcing him to complete the purchase
> it is hereby acknowledged and agreed that the Company shall be entitled to specific performance or other equitable remedy to enforce Parent and Acquisition Sub’s obligations to cause the Equity Investor to fund the Equity Financing, or to enforce the Equity Investor’s obligation to fund the Equity Financing directly, and to consummate the Closing
https://www.sec.gov/Archives/edgar/data/1418091/000119312522120474/d310843ddefa14a.htm https://www.sec.gov/Archives/edgar/data/1418091/000119312522...
- detritus 4y ago*squints, re-reads. Again I mean, notwithstanding the fairly arcane language - 'ouch'.
- freemint 4y ago"(If) the Parent (Elon Musk) fails to consummate the Merger as required pursuant to the Merger Agreement, including because the equity, debt and/or margin loan financing is not funded, Parent will be required to pay Twitter a termination fee of $1.0 billion"
- xadhominemx 4y agoYes, basically no matter what, if for some reason the deal cannot close (eg the government blocks it) he has to pay $1b. He still must try to close the deal.