Elon Musk’s acquisition of Twitter has once again caught the eye of regulators.
The U.S. Federal Trade Commission (FTC) and the SEC are reportedly currently investigating Musk’s delay in filing the necessary documents regarding Twitter. This very delay has probably saved him millions of dollars.
What’s the bottom line? The point is that Musk disclosed that he already owns 9.2% of Twitter on April 4, and that’s 10 days after Musk’s share exceeded the 5% threshold. The Hart-Scott-Rodino Act applies in the United States. According to it, if any individual or company acquires a 5% or more stake in a public company, it must immediately disclose the relevant information. Twitter shareholders have already filed a lawsuit accusing Musk of delaying disclosure. Now regulators are also taking up the case.
What the billionaire is facing, sources do not yet say, but it seems that the deal itself will not be affected.