Elon Musk’s Delay In Disclosing Twitter Stake Leads SEC Investigation
According to the report, on April 4, Musk disclosed a Twitter stake of 9.2% to the US SEC, a delay of at least ten days since Musk’s deal passed the 5% threshold for disclosing a stake.
An investor who exceeds a 5% holding must file a form with the SEC within ten days. It serves as an early signal to stakeholders that a large investor might take over the company.
The US SEC declined to comment on the report, and Tesla Inc’s chief executive officer did not respond immediately to a request from the media for comment.
Aside from the delay in disclosing a Twitter stake, Musk’s April 4 presentation also characterized his involvement as passive. It means he did not plan to take control of Twitter or influence its management or business.
However, the next day Twitter’s board of directors offered a seat to him. A couple of weeks later, the richest man in the world had closed a $44 billion deal to buy the social media giant company.
Elon Musk, known for his open Twitter posts, has a long history of brawls with the SEC.
A US judge recently blasted him for trying to escape a settlement with the SEC that required oversight of his tweets about Tesla.
In April, the Federal Trade Commission is investigating Elon Musk to whether he violated a law requiring companies and individuals to report large transactions to antitrust agencies.
