On Monday, April 25, the whole world got the news of the expected purchase. Elon Musk, CEO of Tesla and SpaceX companies and the richest person in the world, tweeted for about $44 billion had agreed to the purchase. As part of the deal, Musk valued each Twitter share at $54.20, which is currently $49.68.

Well, while Elon Musk’s purchase of Twitter continues to divide people, what happens to Musk and Twitter if this purchase is canceled for whatever reason? In case of cancellation of this purchase agreement, which created dynamism in the market What punishment will both parties receive?disclosed in the filing of the US Securities and Exchange Commission (SEC).

If the deal is canceled, $1 billion will be paid to the other party.

The document, shared on the same day as Elon Musk’s purchase news, revealed that if Twitter or Elon Musk cancel the deal, they will be fined. According to the document, if either party decides to cancel the agreement, is required to pay $1 billion to the other party.

However, the document is Until October 24, 2022 It also appears that the agreement can be terminated if it is not fulfilled. However, it also states that the term can be extended by 6 months to comply with the requirements of the antitrust law. The same document states that Twitter may also receive several offers to buy until the sale is finalized, but if an agreement is reached, the new buyer can terminate the agreement with Elon Musk. Must meet $1 billion to be paid to Musk has been reported.