Scrutiny of Elon Musk’s Twitter Moves Intensifies in Washington

(Bloomberg) -- Elon Musk’s bid to buy Twitter Inc. is facing more scrutiny in Washington following a report that the US Securities and Exchange Commission is probing whether he broke rules last month when disclosing a large stake in the social media platform.

Most Read from Bloomberg

Nike Escalates StockX Feud, Says Site Is Selling Fake Shoes

Don’t Bother Paying Off Student Loan Debt Right Now, Advisers Say

Crypto Billionaires’ Vast Fortunes Are Destroyed in Weeks

Kim Orders Lockdown After North Korea Reports First Covid Case

Ukraine Latest: Germany Can Withstand Gas Halt; US Eyes Drones

The Wall Street Journal reported on Wednesday that the SEC is investigating Musk’s submission of a form that investors must file when they accumulate more than 5% of a company. The Federal Trade Commission is also reviewing the bid by the world’s richest person to take Twitter private.

Musk disclosed on April 4 that he acquired more than 9% in the company, a week later than regulations allow and by using a filing typically reserved for passive investors. He has since embarked on a highly-public takeover bid.

An SEC spokesman declined to comment on the Journal report. Alex Spiro, a lawyer for Musk, didn’t immediately respond to a request for comment.

Inquiries by the SEC don’t always lead to the regulator taking action.

SEC Chair Gary Gensler has been pressing to tighten rules for how investors must disclose they’ve taken a major stake in a company. He’s called for more transparency, and earlier this year proposed cutting the maximum time that an investor has to reveal they’d taken a significant position.

Over the years the SEC has repeatedly sparred with the Tesla Inc. chief executive officer and was already investigating whether he and his brother violated insider trading rules when selling shares in the electric automaker late last year -- something Musk has denied. He’s also fighting the regulator in court over fallout from his infamous tweet that he had secured funding to take Tesla private.

Musk, who reached an agreement to acquire Twitter for roughly $44 billion late last month, has said the San Francisco-based company has restricted user speech and wants to push it toward a more free-speech approach.

Most Read from Bloomberg Businessweek

Mexico’s Hottest Resort Towns Struggle With Covid Travel Boom

What Happened When a Wall Street Investment Giant Moved to Nashville

Don’t Expect Chinese Stimulus to Save the Global Economy

Inflation Is So Bad Democrats Want Biden to ‘Do More’ for Midterms

Major League Soccer Threatens to Replace the NHL as One of the Big Four US Sports

©2022 Bloomberg L.P.
Click Here To Get Funded!