Elon Musk can’t insult Twitter until the deal is closed

Elon Musk must refrain from posting derogatory tweets against Twitter or any of its representatives until the deal is finalized.

One of the curious points Elon MuskTwitter’s $44 billion deal is that a billionaire in the final phase of the deal cannot post derogatory tweets about the company or any of its representatives. The Twitter board this week approved Elon Musk’s proposal to acquire the world’s largest microblogging platform after initially resisting attempts to enact the so-called “Adopting a “poison pill” strategy. With some restraint, board members eventually approved the offer after Musk came up with a final plan to raise a massive amount of money.

Twitter’s deal with Elon Musk came after much drama started last week, with Musk beginning to buy a 9.2% stake in the company earlier this month. After the deal, Musk offered to buy Twitter entirely, offering $54.20 per share for the microblogging platform. Despite the generous offer, the richest man in the world knew Twitter’s board of directors might disagree with his offer and acknowledged this in an interview last week. Despite the problems, the offer was subsequently accepted and the deal is finally closed.

A new SEC statement released Wednesday showed Elon Musk will have to refrain from posting on Twitter. “Discredit the company or any of its representatives” Before closing the transaction. In case of violation of the agreement, Twitter will have to pay $1 billion. Musk can still write about the deal on Twitter, but only until he gets back to his usual tricks and continues his malicious rant against Twitter or its employees. Musk is known for using Twitter as his personal dynamic and was even fined in 2018 for allegedly misleading tweets that violate SEC rules.

$1 billion in commission fees for withdrawing the deal

Another key detail of the deal is the $1 billion scrapping fee that will apply to each party if they decide to withdraw from the transaction upon completion. This means that Musk will have to pay Twitter a billion dollars if he suddenly decides to decline the purchase, and vice versa, Twitter will have to pay the same amount if he backs out of the deal.

It will be interesting to see if Musk will be able to continue with the “No derogatory comments” point, but given his propensity to shoot from the hip, that certainly won’t be an easy feat. For example, even after agreeing to this, Musk posted a tweet that could be considered derogatory to Twitter’s lead attorney, Vijaya Gad. However, it remains unclear whether this will be considered a violation of the billion-dollar clause, especially as Elon Musk He made sure not to mention Gade in his tweet.