Elon Musk can walk away from Twitter deal by paying $1bn break fee | Financial Times
Favourable terms mean billionaire is able to back out by stumping up fraction of net worth
✒ The “reverse termination fee” revealed in the regulatory filing indicates that with this favourable term, Musk could abandon the deal by paying just a fraction of the $21bn of equity he has committed to complete the transaction.
The amount represents just 2.27% of the overall deal value which is substantially lower than the penalty a private equity firm would typically pay (~6%) if it were to abandon a takeover.