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Musk's $44 billion buyout of Twitter faces U.S. antitrust review -report

Published 05/05/2022, 01:25 PM
Updated 05/05/2022, 09:25 PM
© Reuters. FILE PHOTO: Elon Musk's Twitter profile is seen on a smartphone placed on printed Twitter logos in this picture illustration taken April 28, 2022. REUTERS/Dado Ruvic/Illustration

(Reuters) -The U.S. Federal Trade Commission (FTC) is reviewing Tesla (NASDAQ:TSLA) Chief Executive Elon Musk's $44 billion takeover of Twitter Inc (NYSE:TWTR), Bloomberg News reported on Thursday, citing a person familiar with the deal.

The FTC declined to comment, while Musk could not be reached for comment.

The agency will decide in the next month whether it will do an in-depth antitrust probe of the proposed transaction, the person told Bloomberg. Such a probe would delay the deal's closing by months.

Antitrust experts have said there is little likelihood the agency will find any evidence that Musk's purchase of Twitter is illegal under antitrust law.

The FTC is already investigating Musk's initial purchase of a 9% stake in Twitter, probing whether he complied with an antitrust reporting requirement when he acquired the shares in early April.

One critic of the deal has been Open Markets Institute, which said that it should be stopped to avoid giving an already powerful man "direct control over one of the world's most important platforms for public communications and debate." It also cited Musk's ownership of the satellite communications company Starlink as a concern.

© Reuters. FILE PHOTO: Elon Musk arrives at the In America: An Anthology of Fashion themed Met Gala at the Metropolitan Museum of Art in New York City, New York, U.S., May 2, 2022. REUTERS/Andrew Kelly

The deal has the support of Republicans, who hope conservatives banned from the site, like former President Donald Trump, will be allowed to return.

While Musk 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. He has said nothing publicly about allowing banned former users to return.

Latest comments

Elon is an angel whose mission is to free the United States from the oppression of oil and gas burners who are stifling advanced electrification innovations and destroying Western civilization, leaving room for China to gain a foothold in the world.
Imagine thinking corrupt billionaire enron musk actually cares about you and your 1st amendment
it's the same wishful thinking that a twice divorced NY property developer/hollywood reality TV show host cares about West Virginian coal miners and Christian family values
Nasdaq falling 5 % in a single day is the big news.
It is odd, I am thinking the conspiracy theory flakes have never been a part of a transaction this size. They are all reviewed. This is not the same as you buying a Big Mac but simplify it all you want if it then fits your agenda. Snowflakes are melting.
It's just a review like every big transaction should get, you drama queens.
Wake up people! Do you not see what's going on? Democrats afraid of not controlling the information you receive should be enough to frighten everyone! They never had a problem with anyone else!
correct - Bezos owning the Washington Post - also, they know full well it's not illegal and the investigation will fail, but by holding it up for months, the collateral of Tesla stock for loans to seal the deal will be worth a whole lot less as Tesla shares are about to tank a whole lot more for the rest of the year, I might add!!!
Ammar
Democrats
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