- Friday, March 14, 2025
By: Shubham Ghosh
TESLA chief executive officer Elon Musk, who has scrapped the Twitter buyout deal worth $44 billion (£36.5 billion), will have to pay $1 billion (£831 million) in termination fees to the social media giant.
According to a filing with the US Securities and Exchange Commission, “Musk will be required to pay Twitter a termination fee of $1 billion”, in case he cancels the deal.
The innovator-invester was expected to give equity financing of nearly $21 billion (£17.4 billion) on his own, India’s Zee News reported.
The Tesla chief said that Twitter was violating the terms of his $54.20 (£45)-per-share offer by not agreeing to give him more information about the amount of its traffic which is driven by fake accounts.
Subsequently, Musk threatened to blow up the deal.
With him cancelling the deal, Tesla shares went up by more than 14 per cent in after-hours trading on Friday (9), as positive reactions came to Musk’s move.
Tesla shares rose to close at $752.29 (£625.37).
In May, Musk committed to provide an additional $6.25 billion (£5.19 billion) in equity financing for his $44 billion deal with Twitter, bringing his total equity commitment to $33.5 billion (£28 billion) — a move that brought relief to Tesla investors.
Tesla stock took a plunge by more than 30 per cent after Musk announced to fund his Twitter buyout by borrowing against his ownership stake in Tesla.
On Saturday (9), Twitter announced to sue Musk over dumping the deal.
