Musk’s agreement with Twitter includes a billion-dollar break-up fee (pocket change for Musk) and a specific performance clause. — Reuters
We’ve all had buyer’s remorse, but few people ever find themselves regretting a US$44bil (RM195.89bil) purchase. Since Elon Musk agreed to buy Twitter at a substantial premium in April, the stock market has tumbled, with tech stocks among the worst hit. Twitter now seems much less valuable. And for Musk, borrowing against Tesla stock to pay for the company is much more expensive.
Although Musk has good financial reasons to renegotiate his acquisition of Twitter, he can’t void the purchase agreement by pleading poor market timing. Musk faces an uphill battle against Twitter in court to get out of the deal.
Already a subscriber? Log in
Save 30% OFF The Star Digital Access
Cancel anytime. Ad-free. Unlimited access with perks.
