A recent report from The Wall Street Journal has revealed that the US government is investigating Elon Musk.
According to the Wall Street Journal, the Securities and Exchange Commission (SEC) is investigating Musk’s recent $44 billion purchase of Twitter. The SEC is particularly focused on a public form that investors must complete before purchasing more than 5% of a company. The public form serves as a warning to current shareholders and firms that a powerful investor may be interested in acquiring control of the company.
The publication reports that Musk’s 5% disclosure letter was ten days later than it should have been, and as a result, it saved him $140 million as share prices could have possibly been higher if the public had been aware that Musk already owned 5% of the company. Despite Musk’s disclosure letter being late, reports indicate that the SpaceX and Tesla CEO would still be able to follow through with the purchase of Twitter as the board of directors unanimously approved of Musk’s offer, leaving the SEC with little power to operate.
In his initial filing, Musk said he was a passive shareholder, but the following day he filed a form that showed more involvement, including an offer to join the board of directors. A week later, he submitted an offer to buy Twitter for $44 billion, which has been approved by Twitter’s board. Musk has said that he’ll unlock the “extraordinary potential” of the site and that the deal will be good for free speech.
Additionally, the Federal Trade Commission (FTC) is investigating Musk’s acquisition and his purchase is currently be reviewed by FTC officials.
Over the last three years, Musk has had numerous run-ins with the SEC. Musk asked a judge in February to overturn an agreement with the Securities and Exchange Commission that required him to get approval for tweets, accusing the agency of a “harassment campaign.” That request was denied, as was Musk’s request to block an SEC subpoena related to possible insider trading.
Recently, Musk’s pitch deck that includes financial targets for Twitter under his control was leaked online, revealing many details about what Musk expects Twitter will turn into monetarily. Including reversing the permanent ban. If and when the deal is completed, Musk announced this week that he will lift Twitter’s permanent ban on former President Donald Trump.
Musk said adding that the decision in banning Trump was “morally bad.”
“I think that was a mistake because it alienated a large part of the county, and did not ultimately result in Donald Trump not having a voice,” he said.
Sources: Dailywire, Wsj, Forbes