Elon Musk’s Early Twitter Purchase is Under FTC Scrutiny

Elon Musk’s $44 billion Twitter takeover is unlikely to raise antitrust concerns. But what is already being scrutinized is Musk’s failure to comply with rules regarding disclosure of his initial 9 percent stake, according to people with knowledge of the situation. The Federal Trade Commission recently opened an inquiry into whether Musk failed to comply with an antitrust reporting requirement as he amassed his initial 9.1 percent stake in Twitter between the end of January and the beginning of April 2022. At the heart of the inquiry is whether Musk was initially buying as someone who wanted to influence Twitter management or whether he saw himself as more of a passive shareholder. Notably, Musk’s initial filing with the Securities and Exchange Commission categorized his purchase as a passive stake—which immediately raised questions given his public comments about how Twitter is run.