Several new developments have been revealed after Twitter accepted Elon Musk’s $44 billion takeover proposal Monday.
According to a Securities and Exchange Commission (SEC) filing that shows the deal agreement, Musk agreed to pay a $1 billion termination fee if he abandons the acquisition.
At the same time, the social media platform would also be required to pay the same amount if the company chooses to accept a better offer.
A former investment banker, who requested anonymity, said the clause is a standard practice in merger agreements.
“The board has to act as fiduciary, so if a higher price comes they need to consider it,” he said.
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