One of the curious clauses of Elon MuskThe deal to buy $44 billion from Twitter means the billionaire was not allowed to post derogatory tweets about the company or any of its representatives during the company’s completion phase. The Twitter council this week approved Elon Musk’s offer to buy the world’s largest microblogging platform after initially resisting a takeover bid to tailor its strategic call of the “toxic pill.” Following the initial reshuffle, councilors eventually approved the offer after Musk drew up a final plan to raise a gargantuan amount of money.
The Twitter deal with Elon Musk saw a lot of drama last week, which started with Musk buying a 9.2% stake in the company early this month. After this deal, Musk offered to buy Twitter and offered US$54.20 per share for the microblogging platform. Despite the generous offer, the richest man in the world knows that Twitter’s board of directors could not accept his offer to buy and accepted it in an interview last week. However, despite initial difficulties, the offer was accepted and the company is finally closing.
A new SEC filing released Thursday revealed that Elon Musk would be forced to refrain from posting tweets that: “Appoint the company or one of its representatives” until the transaction is completed. If he doesn’t, he’ll have to pay $1 billion on Twitter. Musk can still tweet about the deal, but only as long as he doesn’t return to his usual activities and make an open speech to Twitter or its employees. Known for using Twitter as his high-profile person, Musk was banned in 2018 for allegedly posting misleading tweets that violate SEC regulations.
Another notable item in the agreement is a US$1 billion tax segregation that will be applied to all parties who opt out of the agreement during the closing process. This means Musk will pay him $1 billion on Twitter if he decides not to go through with the purchase, and vice versa, Twitter will pay him the same amount in cash if the deal is reached.
It will be interesting to see if Musk will be able to comply with the no depreciating comments clause, but with his ability to pull the trigger, it certainly won’t be an easy task. For example, even after agreeing to the clause, Musk missed a tweet that could have been seen as depressing in relation to Twitter’s lead attorney, Vijaya Gadde. However, it is not immediately clear whether this is considered a violation of the US$1 billion clause, mainly because Elon Musk be careful not to mention Gadde in your tweet.