Elon Musk’s Twitter acquisition is something that is prolonged for a long time. What we thought will be an ‘easy takeover’ turned out to be one of the most complicated and bizarre business deals in recent history. Now, when the billionaire finally decided to proceed and take over the company, another controversy connected to it pops up out of nowhere. Elon Musk is under investigation for misconduct by the federal authorities of the United States. Will this affect the deal? Read along to find out.
Twitter’s lawyers, represent the company in the Delaware court, reveal that the federal authorities are currently investigating Elon Musk.
Elon Musk Being Investigated By The Feds For Misconduct Connected To Twitter Deal
“Elon Musk is presently under investigation by federal authorities. The investigation is concerning his conduct in connection with the acquisition of Twitter.” – Unsealed documents from the court filing on October 6th reveal. As a response, Twitter’s lawyers requested access to Elon Musk’s handed-over documents.
“Through counsel, he (Musk) has exchanged substantive correspondence with those authorities concerning their investigations.” – Twitter’s lawyers state. “Twitter wants those documents because they bear upon key issues in this litigation.”
In addition to all this, Twitter’s lawyers reveal that they already requested access to the emails and messages between Elon Musk and the Federal Trade Commission.
In April, just before Elon Musk made the offer to acquire the company, he sent an inquiry back to the US Securities and Exchange Commission for his major stake in Twitter. He reported that he has about 9% of the company’s shares. But he did so one week later than regulations allow. To make everything even more unclear he used a filing that only passive investors use. Just days after this he sent an offer to the company to acquire it for $44 billion.
Now, Twitter executives are doing their best not to ‘lose’ Elon Musk’s easily changeable mind. They will do everything in their power to close the deal as soon as possible. Just to reassure that everything will go as agreed, they also seek reaffirmation of the initial contract and court supervision.
Elon Musk is the one that is ‘responsible’ for the delays in the deal. Due to this, Twitter also asks him to pay interest to make up for the delays.
According to Elon Musk, all this delay and drama surrounding the Twitter deal is based on spam accounts. Firstly, he decided to buy the company to solve the bots issue. But, just weeks into it, he started complaining about it. From Twitter, they see this only as buyer’s remorse. And most probably they are right. Finally, after he acquires the company, let’s see whether he will be able to finally solve the bots issue.
