Re:Twitter plans to comply with Musk’s demands for data
by anonymousiam on Thursday June 09, 2022 @11:53PM
(#31689828)
Is the $1B penalty for backing out greater, or less than the difference in capitalization before/after the recent stock downturn. Perhaps he could save money by backing out, paying the $1B, and then making a new offer to shareholders.
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Re:Twitter plans to comply with Musk’s demands for data
by tsimionescu on Friday June 10, 2022 @07:38AM
(#31692659)
There is no backing out penalty of $1B, as there is no option of backing out. That penalty is only for extreme cases that cause the deal to fall through, such as a discovery of massive fraud or the financing falling through entirely (say, Tesla going bankrupt tomorrow). I those cases, Mush would stop owing $44B and onyl owe $1B instead to Twitter's shareholders.
Unless and until such a thing happens, he owes them ~$44B.