Elon Musk may not be able to get rid of the deal with Twitter
By: Andrew Cheng
In April 2022, Elon Musk agreed to buy Twitter for 44 billion dollars, but he canceled the deal because of some disagreement with Twitter.
Initially, Musk was planning to add new features, fend off spam bots, and be more transparent about the app's algorithm to improve the company. He also got support from a consortium of banks that could afford half his total deal price.
But afterward, Musk wanted to end this deal because he blamed Twitter didn't give him more information to see the dimming business prospect of the company. On the other hand, Twitter is suing Musk for getting too much information from their company. At this point, he may be looking for a way to excuse himself from his financial commitment.
According to the Bloomberg Billionaire Index, Elon Musk is the wealthiest person in the world, valued at 218 billion dollars. Although he has the most money in the world, he still doesn't have 44 billion dollars under his bed to buy Twitter. He made a contract and signed two agreements with different banks, Morgan Stanley, Bank of America, and Barclays, to loan 25.5 billion dollars. But after Musk ended the deal, the banks changed their mind while they initially agreed to lend to him.
The University of Chicago Law School professor M. Todd Henderson remarked, "Would you want to fund a guy to own a company that he doesn't want to own?"
Sources: Why Elon Musk can't get out of the Twitter deal even if his lender's bail.