According to Engadget (via The Wall Street Journal), Federal regulators started their investigation of Elon Musk after his Twitter purchase. The investigation also includes the late disclosure of his initial Twitter stake.
The acquisition of 100% of Twitter shares has attracted a lot of attention to Elon Musk. He has faced several lawsuits in this regard, and each of them is trying to prosecute him in some way. The latest controversy around Musk and his Twitter takeover is a federal probe that wants to know when Musk announced his purchase of Twitter on April 4th, almost ten days later than the law requires.
The 10-day delay may not seem like much, but it did allow Musk to buy more shares of Twitter without informing current shareholders. He now owns 9.2 percent of Twitter and is the company’s largest shareholder.
Also, this 10-day gap reportedly saved Musk over $143 million because the official announcement of the news could significantly increase the stock price of Twitter. Just like skyrocketed job interests for the company.
The FTC is not the only entity that is investigating Musk. The current shareholders of Twitter also filed a lawsuit against him over his late disclosure.
Elon Musk is looking to find a way out
The process of the Twitter takeover has become a complicated case. Every day, we hear about a new lawsuit against Musk and his bid. Recently, even a pension fund filed a lawsuit on behalf of the pension fund and “all other similarly located stockholders of Twitter, Inc.”
Musk initially said he had been a passive shareholder. However, he then revealed the offer to join the company’s board which shows more involvement. He formally made a $44 billion offer to buy Twitter as a final move. He even detailed his master plan for the future of Twitter to unlock its “extraordinary potential.”
Of course, such lawsuits and probes will never stop Musk from buying Twitter, as all evidence shows Twitter will be sold to him. Also, Musk’s recent speeches and announcing his plans for the company prove he is very optimism about finalizing the deal.