Twitter: The agreement with Musk includes a penalty clause of one billion dollars

Twitter has said billionaire Elon Musk will have to pay it a $1 billion fee if it cancels his agreement to buy the social media company for $44 billion in cash, the same fees the company would pay if it scrapped the agreement with Musk.

The board of directors of "Twitter" approved, the day before yesterday, Musk's offer after weeks of speculation about the deal, which began after the CEO of "Tesla" acquired a stake in the social networking platform in early April.

The disclosure issued by “Twitter”, yesterday, indicated that one of the conditions that required Musk to pay this penalty clause was the failure of the deal due to the failure to provide the required liquidity, indebtedness or financing loans secured by shares.

This is a defining moment for the 16-year-old company, which has emerged as one of the most influential forums in the world, and is now facing a series of challenges.

The deal, considered one of the largest acquisitions in history, ends Twitter's path as a public company since its initial offering in 2013.

Musk has raised $25.5 billion in fully contingent loan financing and margin loan financing from dozens of banks to back the offer, in addition to $21 billion he will provide himself in exchange for his equity.

The disclosure revealed the possibility of canceling the deal if it is not closed by October 24, which is the possibility of extending the date by another six months to meet certain conditions for closing it, such as anti-monopoly permits and foreign investment.