Twitter announced yesterday it had come to an agreement with Elon Musk to purchase the social media company and take it private at a price of $44 billion.
Today a new 8-K filing published by the U.S. Securities and Exchange Commission (SEC) reveals some of the details on how the purchase will go down.
As indicated last week, the filing indicates two of Musk’s new ‘X Holdings’ companies will merge “with and into Twitter,” with Twitter then becoming a wholly owned subsidiary of X Holdings I.
Although the deal has been unanimously approved by Twitter’s board of directors, it still requires the approval of its shareholders.
If that hasn’t taken place within six months (by October 24, 2022), either party may terminate the agreement, among other conditions.
Ending the deal doesn’t come without a cost. Should either party decide to go that route, they will have to pay the other side a $1 billion termination fee.
The filing also confirms that Musk was able to secure the funding to purchase Twitter by providing $21 billion in equity, $12.5 billion in margin loans, and $13 billion in debt financing.
You can read the full 8-K filing here.
