The U.S. government has reportedly begun an inquiry into Elon Musk’s Twitter acquisition, according to reports.
“The Securities and Exchange Commission is investigating Tesla’s tardy submission of a public filing that investors must complete when they acquire more than 5 percent of the shares of a business,” according to The Wall Street Journal. “The disclosure serves as an early indication to investors and firms that a big investor could attempt to dominate or influence them,” the newspaper added.
According to the SEC, Musk’s April 4 disclosure was at least ten days late, saving him more than $140 million since share prices could have been higher if investors had known about his stake in the firm.
“It’s simple. It’s straightforward,” Daniel Taylor, an accounting professor at the University of Pennsylvania, added. “But will they choose to fight Elon is another matter.”
According to the report, a lawsuit against Musk from the SEC would most likely not prevent him from acquiring Twitter since the company’s board of directors unanimously approved to be acquired by Musk, and the SEC may lack the authority to do so. Musk’s acquisition of Twitter is now being reviewed by the FTC (Federal Trade Commission).
If and when the sale is completed, Elon Musk has promised to reverse Twitter’s permanent ban on former President Donald Trump.
“I believe that was a blunder because it alienated a large portion of the population and didn’t ultimately result in Former President Trump not having a voice,” Musk stated. “It was morally wrong.”
“That doesn’t imply that someone is allowed to say whatever they want,” Musk added. “If they post anything illegal or damaging to the planet, there should be a time-out, temporary suspension, or their tweet should be made invisible.”
“I think the permanent ban should be reversed,” he stated.
Musk said that if there were tweets on an account that violated platform rules, “the account should be either deleted or maybe turned invisible. A suspension—or a temporary ban—is good, but not a permanent ban.”
“It sounds like a permanent ban should be extremely rare and only used for accounts that are fake, spam, or phishing.” Elon Musk said.