Elon Musk will owe Twitter $1 billion if he can’t secure financing

In this photo illustration Elon Musk Twitter seen displayed on a smartphone screen with Twitter logo in the background in Chania, Crete Island, Greece on April 23, 2022.

If Musk fails to secure enough debt funding to complete his $44 billion deal to buy the company, he could be required to pay a $1 billion termination fee, according to a new SEC filing.

The parent refers to the special corporation that Musk created to buy Twitter.

If the conditions to Parent's and Acquisition Sub's obligations to complete the Merger are satisfied and Parent fails to complete the Merger as required by the Merger Agreement, the equity, debt and/or margin loan financing is not funded.

Should the deal fall through, the company will owe Musk a $1 billion break-up fee, according to the same filing.

Musk offered to take the company private for $54.20 per share. He said that the digital public square should be tolerant of different viewpoints.

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