Everyone has a cost. Elon Musk, the CEO of Tesla (TSLA.O), might face a $5 billion price tag.
That’s the amount he could pay Twitter (TWTR.N) to get out of his $44 billion arrangement. It would save both corporations from a long legal struggle and, more significantly, considerable disruption.
Musk is using a chunk of Tesla stock to help pay for his stake in the social media company.
Twitter’s stock price has fallen since Musk disclosed his stake in the company.
Musk has also lost a significant amount of money since his Twitter offer. In only a few weeks, Tesla’s market value dropped by $390 billion.
This is a blast because he’s using Tesla shares to help fund his Twitter offer.
If Twitter were to call off the deal, it would wipe around $5 billion off Twitter’s value before Musk took a stake.
An agreement between Twitter and Tesla to walk away seems like a better bet.
This report’s information was first seen on Reuters; to read more, click this link.