The Elon Musk Twitter acquisition feud is still in search of an end. Despite the two parties saying their intention to complete the deal, the lawsuit between the two is only on hold, and now Musk and Twitter are alleging that the other side is being investigated by federal authorities.
Both the Securities and Exchange Commission (SEC) and the Federal Trade Commission (FTC) are believed to be interested in Musk''s possible omission.
The story so far
Where were we going? Yes, yes.
Musk beganquietly buying up Twitter shares, was offered a seat on the board, changed his mind a day later, agreed to buy the company,but Messenger denied, and it was accepted,and soon, Twitter was sued, causing it to drop. Musk, however, was sued by Twitter, and the company is accused of misgivings about its behavior.
Twitter acquisition saga part #857
So far, the Twitter lawsuit has been canceled because the company doesn''t trust Musk''s latest promise to complete the purchase.
According to Bloomberg, Twitter requested further details on the SEC''s and the Federal Trade Commission''s investigations. The original request was made back in July, and it was repeated last week.
Last week, Twitter Inc.s lawyers tried again to learn what Elon Musk had informed federal authorities who were investigating his attempt to privatize the social media business.
According to a letter published in court Thursday, Facebook''s attorneys wrote to a Delaware judge on October 6 saying he required documentation about the investigations.
Since July, Twitter officials had urged their peers on the Musk side to turn over all communications with the government authority regarding the merger.
The Securities and Exchange Commission and the Securities and Exchange Commission are interested in buying Musks'' Twitter account.
The SEC is established to make sure that public companies, their executives, and investors are all playing according to the regulations. In particular, it requires a broad range of information to be publicly disclosed, to ensure that everyone is on a level playing field when it comes to market knowledge.
Investors who purchase more than a 5% share in a public business are required to disclose this fact, as it might have implications for the share price. Musk purchased 9%, and allegedly made his disclosure late, and using the incorrect reporting method.
Musk said on April 4, that he had acquired more than 9% of Twitter, a week later than regulations allow, and that he used a file usually reserved for passive investors. He later embarked on a highly public on-again-off-again acquisition bid.
The Federal Trade Commission (FTC) has also disclosed obligations that may be applicable in this case, and is said to be conducting an antitrust audit of the proposed deal.
Claimed federal investigation into Twitter
The Musks lawyer did not answer directly, but said it was a mistake.
On Thursday, Alex Spiro, a Musk lawyer, described the letter as a "misdirection" by Twitter.
Nevertheless, he told Bloomberg News that Twitter executives are under investigation, without giving any further explanation.
Officials at Twitter denied Thursday that the company is being investigated by federal authorities.
Peiter Zatko, the company''s former security advisor, may make a reference to a Senate investigation into a claim of extreme, horrifying [security] shortcomings. One of Zatkos'' claims is that Twitter required him to burn notebooks and delete files in order to obtain his severance package. Twitter has denied this.
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