KEY POINTS
  • If Musk walks away from buying Twitter, the social media company can sue him for breach of contract.
  • A buyer can't simply walk away from a deal by paying a fee unless certain conditions apply.
  • Musk may view putting the deal on hold as an opportunity to renegotiate price with Twitter.

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Elon Musk can't just walk away from his deal to acquire Twitter by paying an agreed-upon $1 billion breakup fee. It's not that simple.

Musk tweeted Friday that he has decided to put his acquisition of Twitter "on hold" as he researches whether the amount of fake/spam accounts on Twitter is actually just 5%, as the company has long claimed.

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