Billionaire Elon Musk made headlines this week after it was announced that his offer to buy the social media platform Twitter had been accepted.
Yet as the Daily Wire reported on Tuesday, Twitter has made clear that it still has an option to terminate the deal.
The Daily Wire pointed to a filing that Twitter made with the Securities and Exchange Commission (SEC) which specified that it can call the deal off if a better offer is made.
Twitter will have to pay Musk $1 billion if it reneges on deal
“Twitter may terminate the Merger Agreement in certain additional limited circumstances, including to allow Twitter to enter into a definitive agreement for a competing acquisition proposal that constitutes a Superior Proposal,” the filing stated.
It added, “Parent may terminate the Merger Agreement in certain additional limited circumstances, including prior to the adoption of the Merger Agreement by Twitter’s stockholders if the Board recommends that Twitter’s stockholders vote against the adoption of the Merger Agreement or in favor of any competing acquisition proposal.”
However, while Twitter may still have the ability to cancel its deal with Musk, the filing makes clear that doing so would come at a serious cost.
Under its terms, the company will be forced to pay Musk $1 billion dollars should it enter “a definitive agreement for a competing acquisition proposal that constitutes a Superior Proposal.”
That penalty will also kick in if “the Board recommends that Twitter’s stockholders vote against the adoption of the Merger Agreement or in favor of any competing acquisition proposal.”
Twitter employee upset over transfer of ownership
It appears many at the company are unhappy with the prospect of working for Musk, with Politico reporting that Twitter executive Vijaya Gadde broke down and cried during a meeting on Monday.
For his part, Musk took note of the overwrought reaction that his purchase of Twitter has produced among many on the left.
“The extreme antibody reaction from those who fear free speech says it all,” Musk said in a tweet, adding, “By ‘free speech’, I simply mean that which matches the law.”
“I am against censorship that goes far beyond the law. If people want less free speech, they will ask government to pass laws to that effect. Therefore, going beyond the law is contrary to the will of the people,” he concluded.