Several new developments have been revealed after Twitter accepted Elon Musk’s $44 billion takeover proposal on April 25.
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 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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