Billionaire Elon Musk will lose $ 1 billion if he cancels the deal to buy Twitter

Bloomberg cited a document filed with the US Securities and Exchange Commission (SEC) on April 26 showing that, Twitter will have to pay a contract termination fee of $ 1 billion in case of stopping the agreement to sell this social network to billionaire Elon Musk. Musk himself will have to pay the same amount if he changes his mind.

Specifically, a fee of $ 1 billion applies if Elon Musk does not pay the full amount of the purchase as committed, or Twitter accepts another offer to buy, or shareholders vote against Musk’s offer.

The SEC document also details changes to Twitter’s employee bonus program, as the social network will withdraw from listing once the transaction is completed. Accordingly, bonus shares after the closing date of the sale will be canceled and this social network employee will only receive cash for bonuses.

Earlier, on April 25, Twitter announced it had accepted Tesla CEO Elon Musk’s offer to buy back the company for $54.20 per share, thereby valuing the social media platform. This is at $44 billion.

Last week, Elon Musk announced that he had enough money to buy this social network. Of which, $25.5 billion will be borrowed from Morgan Stanley and part of Musk’s stake in Tesla, while the remaining $21 billion will be from the billionaire’s pocket.

After acquiring Twitter, Elon Musk – the world’s richest man, has the right to run one of the most influential social networks with more than 1.3 billion registered accounts.

Twitter is supposed to serve as a platform for political leaders, industry professionals, and a source of information for millions of ordinary users.

Observers say owning Twitter will give Elon Musk a new level of power over important political and social issues.

Billionaire Elon Musk now has more than 83 million followers on Twitter and started accumulating shares in the company earlier this year.