Elon Musk's acquisition of Twitter with foreign investors will not be investigated by federal officials despite requests from President Joe Biden and a senior Democratic senator, according to sources.
After allegations that the Elon Musk Twitter purchase agreement gave special rights to wealthy foreign investors, including a Saudi prince's holding business and a Chinese cryptocurrency exchange, Elon Musk Twitter purchase was criticized.
Two people who knew about the committee's decision on the possible Elon Musk investigation but didn't want to be named said that officials of the Committee on Foreign Investment in the United States don't think they have the power to officially review the deal of the Elon Musk Twitter purchase, according to the Washington Post.
Even though Musk is an American citizen, the committee is tasked with investigating foreign purchases of American firms. The $44 billion transaction depended on $2.5 billion from foreign supporters and provided some of them exceptional advantages, including privileged access to Twitter user data, but authorities do not seem to believe the conditions warrant government involvement, the two sources said.
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The committee is presided over by US Treasury Secretary Janet L. Yellen. A spokesperson of the agency refused to comment on the Elon Musk investigation.
The news comes a week after the US securities regulator reportedly launched an Elon Musk investigation on his involvement in defining electric vehicle manufacturer Tesla's self-driving claims.
The SEC is investigating the company's Autopilot driver-assistance system claims. The report did note that the agency was investigating whether Elon Musk had made any improper forward-looking remarks, per Reuters.
Elon Musk To Save Twitter From Bankruptcy
In other related news, Elon Musk, CEO of Twitter, Tesla, and Space X, said on Sunday that business has been tough recently, but he added that Twitter is "currently heading to breakeven."
The tech mogul tweeted that he had to "save Twitter from bankruptcy" in addition to his other responsibilities, according to CNBC.
Platformer, a tech news publication, reports that in January 2023, Twitter had a 40% year-over-year drop in daily income and that many of the platform's most prominent advertisers have stopped or reduced their expenditures. Twitter's December ad income fell 70% year-over-year, according to one company.
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