Yup, the US Government are taking a microscope to Elon Musk’s Twitter acquisition with President Joe Biden set to torpedo the deal if the formal review recommends so.
According to Bloomberg, the government is considering a national security review of Musk’s ventures including the takeover deal.
Elon Musk, the richest man in the world at the moment had agreed to a deal to purchase the social media giants for $44 billion. However, his partnership with foreign investors, including Saudi Arabia’s Prince Alwaleed bin Talal, Qatar’s sovereign wealth fund, and Binance Holdings — which was founded by a Chinese businessman for the deal have concerned President Biden’s administration officials.
Officials are considering which tools they could use to review Musk’s ventures, including action by the Committee on Foreign Investment in the US (CFIUS), which reviews foreign takeovers of American businesses, according to the report.
The committee carries out security reviews if a “transaction threatens to impair the national security of the United States,” according to federal regulations. If the CFIUS find a fault, they can recommend to the president that the deal be suspended or prohibited, per the regulations.
It has to be said that after initially offering to buy Twitter in April, Elon Musk has tried to back out of the deal. He blamed that on the social-media platform failing to comply with its obligation to disclose the number of bots on the platform. However, Twitter sued Musk, accusing him of not honoring his obligations.
The billionaire in October offered again to buy Twitter for $44 billion.