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He can still pay the $1B to back out, can't he? But that would involve ego damage, so maybe not.
by multiplegeorges 4y ago
He can still pay the $1B to back out, can't he? But that would involve ego damage, so maybe not.
- ceejayoz 4y agoI thought this too, initially (as did a wide swath of the news media covering it at the time). He can not. The $1B is for a different scenario; he doesn't have the option to back out of the deal voluntarily. https://www.cnbc.com/2022/05/13/elon-musk-cant-just-walk-away-from-twitter-deal-by-paying-1-billion.html https://www.cnbc.com/2022/05/13/elon-musk-cant-just-walk-awa... > A reverse breakup fee paid from a buyer to a target applies when there is an outside reason a deal can’t close, such as regulatory intermediation or third-party financing concerns.
- YawningAngel 4y agoNo, he can't. He's on the hook for 1B if the deal falls through but he has no right to cancel
- pliny 4y agoGiven where the markets are today, Twitter is a ~$30B write down for him once the deal closes, so if he could pay $1B to make it go away he would have done so already.