Where Elon Musk’s Twitter Deal Could Go From Here, a Flowchart

Elon Musk’s

recent tweets cast doubt on whether the billionaire will follow through with his agreement to buy

Twitter Inc.

TWTR 1.19%

for $44 billion. Twitter’s board, meanwhile, says the agreement remains in effect and it intends to enforce it.

As with everything involving the unpredictable

Tesla Inc.

TSLA -0.05%

chief executive, it is far from clear how the situation will unfold and he could still close the deal as planned. While this diagram is in no way exhaustive, it illustrates the ways in which a potential clash could play out.

Does Musk try to back

out of the deal or seek

a price cut?

Have regulators

tried to block

the deal?

If no other obstacles

arise, deal is completed

Musk might be able to

pay the $1 billion break-

up fee and walk away

Has Musk’s

debt financing

fallen through?

If no other obstacles

arise, deal is completed

Did Musk prove Twitter’s

business significantly

deteriorated?

Deal is completed at a

lower price or Musk

walks away but owes

sizable fee to Twitter

Twitter sues Musk

to follow through

with deal

Does Musk try to back

out of the deal or seek

a price cut?

Have regulators

tried to block

the deal?

If no other obstacles

arise, deal is completed

Has Musk’s

debt financing

fallen through?

Musk might be able to

pay the $1 billion break-

up fee and walk away

If no other obstacles

arise, deal is completed

Did Musk prove

Twitter’s business

significantly

deteriorated?

Deal is completed at a

lower price or Musk

walks away but owes

sizable fee to Twitter

Twitter sues Musk

to follow through

with deal

Does Musk try to back

out of the deal or seek

a price cut?

Have regulators tried

to block the deal?

If no other

obstacles arise,

deal is completed

Musk might be able to

pay the $1 billion break-

up fee and walk away

Has Musk’s

debt financing

fallen through?

If no other

obstacles arise,

deal is completed

Did Musk prove

Twitter’s business

significantly

deteriorated?

Deal is completed

at a lower price or

Musk walks away

but owes sizable

fee to Twitter

Twitter sues Musk

to follow through

with deal

Write to Cara Lombardo at cara.lombardo@wsj.com