Bloomberg News has reported that the US Federal Trade Commission is reviewing Tesla CEO Elon Musk’s offer worth $44 billion to buy Twitter.
Citing a person familiar with the deal, it reported that the agency will decide in the next month whether it will do an in-depth antitrust probe of the proposed transaction.
There is a possibility that the agency will find evidence against Musk’s purchase under anti-trust law and the probe can delay the deal’s closing by months as per experts.
It comes after CNBC reported that Musk is expected to serve as the temporary CEO of Twitter for a few months and has raised $7.1 billion for his acquisition from investors.
This is not the first investigation Musk is facing by the FTC as it already probing his initial purchase of 9 per cent stake in Twitter.
Open Markets Institute, which is a critic of the deal, said “direct control over one of the world’s most important platforms for public communications and debate” should not be given to a billionaire like Musk who is already powerful.
Also read | Parag Agrawal to go? Elon Musk may become new Twitter CEO: Reports
Saudi Arabian billionaire Prince Alwaleed bin Talal, agreed to contribute about 35 million Twitter shares worth $1.9 billion so as to retain a stake in the company post-acquisition, praised Musk by saying “I look forward to roll our ~$1.9bn in the ‘new’ @Twitter and join you on this exciting journey.”
South African billionaire Musk, who is the world’s richest man with a net worth of $265 billion according to Forbes, has tweeted about free speech, when he discusses plans for Twitter he focuses more on helping revenues by getting more people to use it or cutting such expenses as executive pay.
(With inputs from agencies)
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