Elon Musk’s $44 Billion Twitter Takeover Faces SEC Investigation
The US Securities and Exchange Commission (SEC) has launched an investigation into Elon Musk’s $44 billion takeover of Twitter. This inquiry may require Mr. Musk, the world’s wealthiest individual, to testify. The investigation centers on concerns that Musk violated federal securities laws in 2022 during his acquisition of Twitter stock. Additionally, it examines statements and SEC filings related to the deal, marking a new chapter in Musk’s long-running feud with the SEC.
The SEC disclosed its intent to seek a court order compelling Musk to provide testimony. They had previously subpoenaed him in May 2023, requiring him to testify at the SEC’s San Francisco office. Musk initially agreed to appear on September 15, but two days before the scheduled testimony, he raised several objections. Among his concerns was the notion that the SEC was attempting to harass him and the need for his legal counsel to review pertinent information from a biography about Musk.
Musk had already submitted documents related to the investigation and provided testimony via video conference in July the previous year. His representative, Alex Spiro, argued, “The SEC has already taken Mr. Musk’s testimony multiple times in this misguided investigation – enough is enough.”
The SEC has expressed its aim to acquire information not already in its possession, pertinent to a lawful investigation. This investigation arises from Musk’s acquisition of Twitter after accumulating a significant minority stake in April of the previous year. He initially indicated his intention to be a passive stakeholder, without the intention to influence Twitter’s management. However, he later accepted and subsequently rejected a board seat at the company.
In late April, Musk announced his plans to buy Twitter for $44 billion. He later sought to terminate the deal, citing Twitter’s alleged failure to fully disclose bot activity on its platform. Faced with the prospect of a trial compelling him to complete the deal, Musk ultimately concluded the purchase of Twitter in October 2022.