• Cryptocurrency
  • Earnings
  • Enterprise
  • About TechBooky
  • Submit Article
  • Advertise Here
  • Contact Us
TechBooky
  • African
  • AI
  • Metaverse
  • Gadgets
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
  • African
  • AI
  • Metaverse
  • Gadgets
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
TechBooky
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Home Business

Elon Musk Will Have To Pay $1b If He Terminates His Twitter Bid

Paul Balo by Paul Balo
April 27, 2022
in Business, Social Media
Share on FacebookShare on Twitter

According to a new SEC filing, in a scenario where Elon Musk is unable to secure enough debt funding to complete his $44 billion bid to acquire Twitter, he’d be required to pay Twitter a termination fee of $1 billion.

This is likely not to happen because days before his bid got accepted by Twitter, the billionaire said he had acquired enough funding for his offer.

Twitter’s board before warming up to the bid had tried to prevent a hostile takeover of the company. The board adopted a “poison pill” otherwise known as a shareholders’ rights agreement. “The Rights Plan will reduce the likelihood that any entity, person, or group gains control of Twitter through open market accumulation without paying all shareholders an appropriate control premium or without providing the Board sufficient time to make informed judgments and take actions that are in the best interests of shareholders,” Twitter said via a statement.

Elon Musk’s offer most likely got considered after he revealed that he had acquired $46.5 billion to finance the deal.

“The Twitter Board conducted a thoughtful and comprehensive process to assess Elon’s proposal with a deliberate focus on value, certainty, and financing. The proposed transaction will deliver a substantial cash premium, and we believe it is the best path forward for Twitter’s stockholders,” Bret Taylor, Twitter’s Independent Board Chairman said.

Twitter’s acceptance of Elon Musk’s bid has raised concerns from several parties. For example, various human rights groups have come up to shed light on the possibility of hate speech thriving on Twitter all in the name of “free speech” which is the agenda that Elon Musk is pushing. “The last thing we need is a Twitter that wilfully turns a blind eye to violent and abusive speech against users, particularly those most disproportionately impacted, including women, non-binary persons, and others,” Michael Kleinman, the director of technology and human rights at Amnesty International USA said on Monday. Elon Musk is the “singular solution I trust” to run Twitter, Jack Dorsey said in a Tuesday tweet.

In principle, I don’t believe anyone should own or run Twitter. It wants to be a public good at a protocol level, not a company. Solving for the problem of it being a company however, Elon is the singular solution I trust. I trust his mission to extend the light of consciousness.

— jack (@jack) April 26, 2022

Twitter will also have to pay Elon Musk $1 billion in breakup fee if the company decides not to go through with the deal as a result of another offer, according to this filing.

 

Source: TechBooky Business

Related Posts:

  • Twitter Sues Elon Musk for Terminating His $44 Billion Takeover Bid
    Twitter Sues Elon Musk for Terminating His $44…
  • A photo illustration shows Elon Musk’s twitter account
    Twitter Is Suing Elon Musk, Forcing Him To Honour…
  • The Trial Between Twitter And Elon Musk Is Set To…
  • iphone-7-BGR
    Twitter To Pursue Legal Battle With Elon Musk After…
  • iphone-7-BGR
    Elon Musk Must Complete Twitter Deal By October 28…
  • A photo illustration shows Elon Musk’s twitter account
    Breaking: Elon Musk Notifies Twitter Of Deal Termination
  • Elon Musk Is Ready To Acquire Twitter, And At The Original Price He Intended
    Elon Musk Is Ready To Acquire Twitter, And At The…
  • Twitter Has Been Officially Acquired By Elon Musk
    Twitter Has Been Officially Acquired By Elon Musk

Discover more from TechBooky

Subscribe to get the latest posts sent to your email.

Tags: acquisitionelon musktwitter
Paul Balo

Paul Balo

Paul Balo is the founder of TechBooky and a highly skilled wireless communications professional with a strong background in cloud computing, offering extensive experience in designing, implementing, and managing wireless communication systems.

BROWSE BY CATEGORIES

Select Category

    Receive top tech news directly in your inbox

    subscription from
    Loading

    Freshly Squeezed

    • Vietnam Will Soon block Telegram, App Owners are Surprised May 24, 2025
    • Widespread Downtime Reported By X Users May 24, 2025
    • MongoDB Enters Africa Through Nigeria Targeting $100B Digital Market May 24, 2025
    • Meta Quest’s Headgear Will Soon Support 3D Instagram Images May 24, 2025
    • Mozilla To Shut Down Pocket To Concentrate On Firefox May 24, 2025
    • OpenAI Upgrades Operator Agent’s AI Model May 24, 2025

    Browse Archives

    May 2025
    MTWTFSS
     1234
    567891011
    12131415161718
    19202122232425
    262728293031 
    « Apr    

    Quick Links

    • About TechBooky
    • Advertise Here
    • Contact us
    • Submit Article
    • Privacy Policy

    Recent News

    Court In Russia Issues Approval To Block Telegram App

    Vietnam Will Soon block Telegram, App Owners are Surprised

    May 24, 2025
    Widespread Downtime Reported By X Users

    Widespread Downtime Reported By X Users

    May 24, 2025
    MongoDB Enters Africa Through Nigeria Targeting $100B Digital Market

    MongoDB Enters Africa Through Nigeria Targeting $100B Digital Market

    May 24, 2025
    Meta Quest’s Headgear Will Soon Support 3D Instagram Images

    Meta Quest’s Headgear Will Soon Support 3D Instagram Images

    May 24, 2025
    Mozilla To Shut Down Pocket To Concentrate On Firefox

    Mozilla To Shut Down Pocket To Concentrate On Firefox

    May 24, 2025
    OpenAI Upgrades Operator Agent’s AI Model

    OpenAI Upgrades Operator Agent’s AI Model

    May 24, 2025
    • Login

    © 2021 Design By Tech Booky Elite

    Generic selectors
    Exact matches only
    Search in title
    Search in content
    Post Type Selectors
    • African
    • Artificial Intelligence
    • Gadgets
    • Metaverse
    • Tips
    • About TechBooky
    • Advertise Here
    • Submit Article
    • Contact us

    © 2021 Design By Tech Booky Elite

    Discover more from TechBooky

    Subscribe now to keep reading and get access to the full archive.

    Continue reading

    We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok