New Delhi: Tesla CEO Elon Musk, who canceled Twitter’s $44 billion buyout deal, has to pay the microblogging platform a $1 billion termination fee. According to a previous SEC filing, “Musk will pay Twitter a $1 billion termination fee” if he cancels the deal.
Musk was expected to provide approximately $21 billion in equity funding alone. (ALSO READ: Apple Aims to Sell More iPhone 14 Pro Models than iPhone 14 in 2022, Here’s Why)
The Tesla CEO had said that Twitter was violating the terms of its $54.20 per share offer by refusing to give him any further information on how much of the platform’s traffic is being driven by fake accounts. (ALSO READ: Netflix Introduces Spatial Audio Across Devices)
He then threatened to blow up the deal over the matter.
After he ended the deal, Tesla shares are up more than 14 percent in after-hours trading on Friday as investors reacted positively to Musk’s move.
Tesla shares rose 14.51 percent to close at $752.29.
Musk committed in May to provide an additional $6.25 billion in equity for its $44 billion Twitter acquisition, bringing its total equity exposure to $33.5 billion and providing relief to Tesla investors brings.
Tesla stock plummeted more than 30 percent after Musk announced he would fund his Twitter buyout by borrowing against his Tesla ownership interest.
Twitter announced on Saturday that it would sue Musk for terminating the deal.
