The US Federal Trade Commission is reportedly reviewing the $44 billion Twitter acquisition of Elon Musk for possible antitrust concerns.
The FTC now has 30 days to review the deal and decide whether to file a second filing to further investigate the matter, although most experts believe there are no antitrust concerns overriding the acquisition, according to Bloomberg could block.
But the anti-monopoly activist group Open Markets Initiative, where Democratic FTC chair Lina Khan used to work, has called on the agency to block the deal, saying it “poses an immediate and direct threat to American democracy.” and freedom of speech”.
The group argued that Musk’s ownership of satellite internet service Starlink already gives him control of a key communications platform and that his purchase of Twitter would represent a dangerous concentration of power.
Democratic FTC chair Lina Khan used to work for an activist group that is now urging the agency to block the Twitter acquisition of Elon Musk on antitrust grounds
The US Federal Trade Commission is reportedly reviewing the $44 billion Twitter acquisition of Elon Musk for possible antitrust concerns
Rep. Jim Jordan, the top Republican on the House Judiciary Committee, released a letter Wednesday raising concerns about the FTC antitrust investigation and suggesting he plans to investigate.
Jordan expressed concern over statements by the Open Markets Institute (OMI), which he described as “a far-right political advocacy group,” calling for the FTC to halt the deal.
“We are concerned that OMI – where you were previously employed as Legal Director – is attempting to use its close relationship with you to take action to further restrict freedom of expression online,” Jordan wrote in the letter to Khan.
“OMI appears to believe that the FTC will be receptive to their reckless efforts to influence a federal agency run by their former employee,” Jordan wrote.
Jordan asked the FTC to keep records of their review of the Twitter deal, suggesting he may be planning to investigate the matter.
From 2017 to 2018, Khan was legal director at OMI, which describes itself on its website as “committed to combating the threats to our democracy, individual liberties and our national security posed by today’s unprecedented levels of corporate concentration and monopoly power.”
Representative Jim Jordan issued a letter Wednesday expressing concerns about the FTC antitrust investigation and suggesting that he intends to investigate
Jordan has backed Musk’s purchase of Twitter in hopes that some conservatives, like former President Donald Trump, who were removed from the social media platform, could return.
There is little expectation that Musk’s potential purchase of Twitter will be rejected by antitrust authorities.
In the letter, Jordan asked if Khan or anyone else at the FTC helped draft the Open Markets Statement. And he asked if the agency had taken any action regarding the statement. He asked for a response by 5 p.m. on May 18.
Musk, the world’s richest man and an active and wayward Twitter user, struck a deal in late April to buy Twitter for $44 billion in cash.
While Musk has tweeted about free speech, when discussing his plans for Twitter they focus more on helping the company make more money by getting more people to use it or cutting expenses like executive salaries .
He has not commented publicly on allowing suspended former users to come back.
The FTC is also reportedly investigating Musk’s initial purchase of a 9 percent stake in Twitter and whether he complied with an antitrust filing requirement when he acquired the stakes in early April.
Musk, the world’s richest man and an active and wayward Twitter user, struck a deal in late April to buy Twitter for $44 billion in cash
If the FTC finds that Musk violated disclosure laws, he could face a fine of up to $46,517 a day for not complying with federal guidelines — a negligible amount for the world’s richest man with a net worth of about $240 billion dollars.
The FTC confirmed receipt of Jordan’s letter in a statement to DailyMail.com but declined to comment further.
It comes after it was revealed the world’s richest man has 18 investors who have pledged to collectively raise more than $7 billion in equity to fund his takeover.
In a filing Thursday, Musk said the trust owned by his friend, Oracle Corp co-founder Larry Ellison, will invest $1 billion in the $44 billion acquisition.
Musk said he also received equity commitments from investors including Sequoia Capital ($800 million) and Brookfield ($250 million) to fund $7.14 billion.
Other investors listed included Qatari Holding ($375 million) and NYC real estate investor Steve Witkoff ($100 million).
The filing also lists Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud of Saudi Arabia who has pledged 34,948,975 shares of Twitter Inc.
The king made the move “to retain a stake in Twitter after the merger is complete.”
Alwaleed originally opposed the acquisition but tweeted Musk today, referring to his “new friend” who will be an “excellent executive” at the social media giant.
Meanwhile, Musk’s margin loan was reduced from $12.5 billion to $6.25 billion, the filing revealed.