Elon Musk Can't Badmouth Twitter Or Its Representatives, Takeover Deal's Terms Dictate

Tesla, Inc. TSLA CEO Elon Musk is prohibited from casting aspersions on Twitter Inc. TWTR, a definitive proxy statement filed by the social media firm on Tuesday showed. 

What Happened: Under the "public announcements" section, Twitter said the equity investor — a reference to Musk — shall be allowed to tweet about the merger, provided it does not "disparage" Twitter or any of its representatives. 

Musk has premised his interest in Twitter on his quest to make it as a "platform for free speech" around the globe. It remains to be seen whether this mandate laid down by Twitter will go down well with the Tesla chief. 

Toeing The Line? Musk on Tuesday took potshots at Twitter's top censorship advocate, Vijaya Gadde,  who was behind the suspension of the Twitter account of the New York Post for publishing a story in October 2020 related to Hunter Biden, the son of U.S. President Joe Biden.

Musk called the suspension "incredibly inappropriate", replying to a tweet by podcaster Saagar Enjeti who shared the headline of a story about Gadde crying during a company meeting about Musk's takeover.

Suspending the Twitter account of a major news organization for publishing a truthful story was obviously incredibly inappropriate

— Elon Musk (@elonmusk) April 26, 2022

Twitter's late Tuesday filings also revealed that Musk has to shell out a massive $1 billion if he decides to back away from the Twitter deal. Price Action: Twitter shares closed Tuesday's session at $49.68, down 3.91%, according to  BenzingaPro data.

Related Link:  Elon Musk Tries To Explain His Approach To Twitter Moderation