Elon Musk’s recent tweets cast doubt on whether the billionaire will follow through with his agreement to buy Twitter Inc. TWTR 2.68% for $44 billion. Twitter’s board, meanwhile, says the agreement remains in effect and it intends to enforce it.
As with everything involving the unpredictable Tesla Inc. TSLA -6.42% chief executive, it is far from clear how the situation will unfold and he could still close the deal as planned. While this diagram is in no way exhaustive, it illustrates the ways in which a potential clash could play out.
START HERE
Does Musk try to back
out of the deal or seek
a price cut?
Have regulators
tried to block
the deal?
If no other obstacles
arise, deal is completed
Musk might be able to
pay the $1 billion break-
up fee and walk away
Has Musk’s
debt financing
fallen through?
If no other obstacles
arise, deal is completed
MUSK LOSES
Did Musk prove Twitter’s
business significantly
deteriorated?
Deal is completed at a
lower price or Musk
walks away but owes
sizable fee to Twitter
Twitter sues Musk
to follow through
with deal
TWO SIDES
SETTLE CASE
START HERE
Does Musk try to back
out of the deal or seek
a price cut?
Have regulators
tried to block
the deal?
If no other obstacles
arise, deal is completed
Has Musk’s
debt financing
fallen through?
Musk might be able to
pay the $1 billion break-
up fee and walk away
If no other obstacles
arise, deal is completed
Did Musk prove
Twitter’s business
significantly
deteriorated?
MUSK LOSES
Deal is completed at a
lower price or Musk
walks away but owes
sizable fee to Twitter
Twitter sues Musk
to follow through
with deal
TWO SIDES SETTLE CASE
START HERE
Does Musk try to back
out of the deal or seek
a price cut?
Have regulators tried
to block the deal?
If no other
obstacles arise,
deal is completed
Musk might be able to
pay the $1 billion break-
up fee and walk away
Has Musk’s
debt financing
fallen through?
If no other
obstacles arise,
deal is completed
Did Musk prove
Twitter’s business
significantly
deteriorated?
MUSK LOSES
Deal is completed
at a lower price or
Musk walks away
but owes sizable
fee to Twitter
Twitter sues Musk
to follow through
with deal
TWO SIDES
SETTLE CASE
Write to Cara Lombardo at [email protected]
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