Elon Under Federal Investigation; Twitter Wants the Goods
In a new turn of events, Elon Musk is now being investigated by federal authorities over his acquisition of Twitter. The deal has been in the works for months, but it appears that Twitter is looking for some kind of leverage in the situation, or at least further details.
So far no details are given about the nature of the investigation, but it’s possible that the SEC is involved. Regardless, it’s clear that Elon Musk is facing some major hurdles in his quest to take over one of the most popular social media platforms; as we’ve highlighted at various turns.
“Elon Musk is presently under investigation by federal authorities for his conduct in connection with the acquisition of Twitter,” attorneys for Potter Anderson Corroon LLP wrote in a filing dated Oct. 6 and unsealed Thursday.
We’ll have to wait and see what comes of this investigation, and what it specifically pertains to. Twitter has requested the documents involved with the investigation, so it looks like we may get some sort of a glimpse.
Before we get too carried away, The Chancery Daily, who has must-follow coverage of the Twitter debacle, says “I’m not saying there’s nothing here, I’m saying it’s not news to the parties. Their calculus has all this baked in.” And adding, “Is this news? No.”
But hey, another day, another Elon breaking news story.
Information for this briefing was found via Twitter, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
SmallCapSteve started blogging in the Winter of 2009. During that time, he was able to spot many take over candidates and pick a variety of stocks that generated returns in excess of 200%. Today he consults with microcap companies helping them with capital markets strategy and focuses on industries including cannabis, tech, and junior mining.