Federal Investigation Launched into Elon Musk's $44 Billion Transaction, as Perced by Twitter's Legal Declaration
** Updated Article: Elon Musk's Twitter Takeover Saga**
Elon Musk, the badass CEO of Tesla, finds himself at the center of a federal probe, regarding his $44 billion acquisition of Twitter Inc. In a court document made public on a Thursday, Twitter revealed that Musk is being scrutinized by the feds for his antics surrounding the social media platform deal.
The document omits the specifics of the probe, including the investigating authority.
In July, Twitter slapped a lawsuit on Musk, urging him to seal the deal. Musk's lawyers rejected Twitter's demand for access to documents, citing "investigative privilege."
Twitter claimed it had been doggedly chasing Musk's lawyers for months, seeking their communications with federal authorities. They've yet to get a positive response. Twitter asked a Delaware judge to command Musk's legal eagles to cough up the desired docs.
Musk's attorneys provided a confidentiality log in late September, listing the docs they intend to hide. Twitter sniffed that the log included drafts of an email sent on May 13 to the US Securities and Exchange Commission (SEC) and a slide presentation to the Federal Trade Commission (FTC).
Twitter grumbled, "Enough with the 'hide-the-ball' game!"
Musk's legal team remains mum on a request for comment.
Twitter filed its court request on Oct. 6, the same day a Delaware judge hit the pause button on court proceedings to allow Musk and Twitter to finally kiss and make up.
The SEC has been grilling Musk over several comments he made about the Twitter buyout.
In April, the SEC asked Musk why he delayed disclosing his ownership of Twitter and why it seemed he planned to be a passive shareholder. In the subsequent disclosure, Musk admitted that he was an active investor.
In a letter penned to Musk in June, the SEC inquired if he should have updated his public filing to divulge his intent to call off or postpone the deal.
Reuters reports that Musk's attorney Alex Spiro considers Twitter's court filing a "red herring." Twitter chose to zip it about Spiro's reaction and the ongoing investigation into Musk.
Insight: Musk is under investigation by the SEC for his delayed disclosure of his stake in Twitter and potential securities violations. The investigation delves into Musk's intentions and trading practices related to the Twitter acquisition [1][5]. In addition, the SEC requested detailed information from Twitter about user data and spam accounts as part of their broader inquiry into the acquisition and Twitter's disclosures during the deal [2].
[1] - SEC investigates Elon Musk for potential securities violations related to his Twitter stake.[2] - SEC requests detailed Twitter data and information during Musk investigation.[3] - Delaware judge presses Musk and Twitter to close deal after court filing.[4] - Musk's attorney responds to SEC's lawsuit and ongoing investigation.[5] - Additional federal investigations and scrutiny of Musk and his companies continue.
- In addition to the SEC's investigation into Elon Musk's delayed disclosure of his stake in Twitter and potential securities violations, Musk's entrepreneurship in business and politics, specifically his $44 billion acquisition of Twitter Inc, is being scrutinized by other federal agencies.
- The general-news landscape is abuzz with reports of Elon Musk's legal battles, as he faces a federal probe not only for his dealings with the SEC but also for his antics surrounding the Twitter deal, which has implications for his status as a renowned entrepreneur in the world of finance and business.
