Thoughts on the Twitter deal...

Sullivan

Well-Known Member
Nov 24, 2001
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There has been a bit of discussion about the Twitter deal and the $1 billion breakup fee. I deal with quite a few contracts, and feel the specific language within the agreement will dictate how the court rules.

With that being said, I can't image drafting a contract with a breakup fee of $1 billion, unless you were willing to allow someone to walk from the deal for $1 billion. If it were me, I wouldn't put a dollar amount in the agreement. If someone wanted out of the contract, that would need to be negotiated after the fact, otherwise they buy the company.