Elon Musk is back on the radar of regulators because of the deal to acquire Twitter.
Reportedly, the US Federal Trade Commission (FTC) and the US Securities and Exchange Commission (SEC) are currently investigating Musk’s delay in filing the necessary documents regarding Twitter. It is likely that this very delay saved him millions of dollars.
What is the point? The bottom line is that Musk disclosed that he already owns a 9.2% stake in Twitter on April 4, and this is 10 days after Musk’s share exceeded the 5% threshold. The United States has the Hart-Scott-Rodino Act. According to it, if any natural or legal person acquires a share of 5% in a public company, he must immediately disclose the relevant information. Twitter shareholders have already filed a lawsuit accusing Musk of delaying the release of the data. Now the regulators have taken over.
What threatens the billionaire, the sources have not yet reported, but it seems that this will not affect the deal itself.