Elon Musk has signed off that he will not insult Twitter or its employees in the coming months. It would cost Musk $1 billion if he regretted and wanted to pull out of the purchase.
In 71 pages long Agreement between Twitter and Elon Musk There are two conditions that many have noticed:
* Both Twitter and Musk promised to pay the other party $1 billion, now equivalent to 9.25 billion kroner, if one of them wanted to withdraw from the agreement.
* Musk is allowed to tweet about the agreement in the months until purchase is complete. But it has to happen with one special condition: Musk must not tweet anything that insults Twitter or its employees.
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This is how Elon Musk manages to raise NOK 400 billion on Twitter
Officially, the merger
Although Musk actually buys Twitter for cash, Twitter affiliate X Holdings II and Musk have formally entered into a merger agreement. This means that Musk will not send a takeover offer to all shareholders. They must first vote for or against this merger.
The oil fund, which owns 0.9 percent of the shares in Twitter, will answer yes or no in such a vote among shareholders.
Following the expected approval of the merger, Musk will buy out all other shareholders after the merger is complete.
In this case, the Petroleum Fund will receive NOK 3.6 billion into an account.
$1 billion divorce fee
Musk will only be able to take over Twitter once in the fall.
Until then, it is the current administration that controls Twitter and also decides who can tweet and who is blocked.
A lot can happen before Musk takes over. Therefore the merger agreement stipulates the circumstances which may give each party a valid reason to cancel the merger and what is not sufficient reason.
A good reason for Musk is that in the time Twitter’s management until the acquisition is complete, they must decide to do something that hurts the company’s finances.
In the future, Twitter cannot actively search for other buyers, but the Board can accept such offers. If Musk doesn’t make an offer, and someone else buys the company, Twitter will have to pay the aforementioned divorce fee.
divorce fee From a billion dollars is large measured in absolute volumes, but, according to experts, it is not particularly large against the volume of purchase.
Musk pays a total of $44 billion, just over $400 billion, on Twitter.
Musk promises to control himself
However, the most special thing about the agreement is that Musk’s time until the purchase is completed cannot offend Twitter as a company or its employees.
There may be good reasons to include this in the agreement. Musk came up with an insult perhaps above all to Twitter late on April 9.
It was distance He bought 9.1 percent of the shares, but he was right fuR. that it became known to all that he had become tense between himself and the board of directors of Twitter.
This weekend, his Twitter followers asked a question if Twitter’s San Francisco headquarters could easily be converted into a homeless shelter? This is because apparently none of the Twitter employees showed up to work there anyway.
Musk deleted both this message and a nicer tweet shortly after. In this post, he wondered if the letter “w” in the Twitter company name should not be removed.
On the other hand, Musk did not delete the tweet, which is the one he posted on April 9, as very few people with the largest number of followers on Twitter are active there. Then he asked the question is Twitter dying?
After that, he entered into an agreement to buy Twitter completely.
The latest development is that Musk clearly thinks he can still Criticizes Twitter and its employees only as long as they don’t do it directly abuse With them.
In the past 24 hours, Musk has twice responded to tweets by others, criticizing Twitter and the administration there. Below is Musk’s response to a tweet from a conservative TV journalist. There, Twitter’s chief legal officer is under fire for censoring New York Post articles about Hunter Biden’s laptop ahead of the 2020 presidential election.
Here is Musk’s response to the critical tweet:
“Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff.”