Elon Musk is being investigated for details about his possible purchase on Twitter, with federal regulators saying it was too late to complete a key form in the process, according to the Wall Street Journal.
According to a report in the Wall Street Journal, the Securities and Exchange Commission is investigating Elon Musk’s failure to promptly disclose the massive Twitter stock market last March. Recall that the billionaire was too late to file the required public form, as it was in the process of acquiring 9.2% of the Twitter shares and become the largest shareholder of the company.
This lag allowed him to buy more shares without notifying the other shareholders, and thus save a significant amount of money in the process. Musk is also being sued by Twitter shareholders and a separate investigation by the FTC into the same matter.
As a result of these new transaction inquiries, Twitter shares have fallen more than 10% since Elon Musk’s first proposal. Since the close of trading on Thursday, the stock has been trading at $ 45.08. well below the $ 54.20 that Musk agreed to pay on April 27. The difference is over $ 9 billion in market value.
Elon Musk stops Twitter acquisition, shares plummet
An investment firm had also advised the billionaire to withdraw from the deal and pay a $ 1 billion fine for breach of contract so he could make a new, smaller bid that would better match the current value of the business. Although Twitter’s board has already approved the purchase. The deal can take months to close and there is no guarantee that it will be done. The investigation should determine whether Elon Musk’s actions had a significant impact on other investors. It is unknown at this time what he will do after leaving the post.
Elon Musk himself announced on his personal account earlier today that he had suspended the acquisition. resulting in Twitter losing an additional 25% in pre-purchase transactions. For now, the CEO of Tesla would expect more details about the volume of fake accounts on the platform. According to him, accounts that spread spam; and scams accounted for less than 5% of daily revenue-generating users, but that percentage remains to be seen.
– Elon Musk (@elonmusk) 13 May 2022
Twitter CEO Parag Agrawal has announced a change in new hires and spending cuts as a whole amid a global economic downturn. and a period of uncertainty that led to the acquisition of the social network by Elon Musk. In addition, the company lost two top executives unexpectedly for them.
In addition to hiring, according to an internal directive received by Bloomberg through its channels, the company may cancel job offers that have already been made. This does not apply to positions critical to business. In addition, savings in business travel, consulting and marketing are provided.