A regulatory waiting period for Elon Musk to complete his acquisition of Twitter under the Hart-Scott-Rodino Antitrust Improvements Act (HSR) ended on Friday, allowing him to move closer to the deal. The HSR Act compels businesses to notify the Federal Trade Commission (FTC) and the Department of Justice in advance of transactions above a specific threshold (DOJ). Following that, the FTC and DOJ have 30 days from the original notice of the prospective acquisition to conduct an inquiry into the transaction to see whether any further information is required to evaluate the purchase’s legality.
According to Fox Business, neither the FTC nor the DOJ have asked Musk or any of his associated firms for more information. Despite the fact that the HSR’s waiting period has expired, Twitter’s current leadership has said that Musk’s purchase of the social media platform is still subject to conventional closing conditions, such as shareholder and regulatory clearances. Following Musk’s acquisition of Twitter for $54.20 per share, the firm is anticipated to become a privately owned corporation.
It is anticipated to be completed in 2022. Musk had intended to fund his acquisition of Twitter with $21 billion in existing stock and $25.5 billion in loans from third-party lenders. Musk’s Tesla shares were pledged against the value of $12.5 billion in margin loan funding. His equity funding climbed to $27.25 billion from $21 billion, but his margin loan financing was lowered from $12.5 billion to $6.25 billion.
Musk has recently promised $6.25 billion in additional stock, bringing the total share of equity-based funding to $33.5 billion, therefore removing the requirement for margin loan financing. Musk has also been in negotiations with Jack Dorsey, the co-founder and former CEO of Twitter, about obtaining more funding for the transaction.
According to the most recent events, Musk has suggested that the purchase proposal be placed on hold while he and his advisors wait for calculations to back up Twitter’s internal estimate that spam and bogus accounts account for fewer than 5% of all users. Despite pushing through with the acquisition of Twitter for all intents and purposes, Musk has voiced worry about the status of the American economy. Musk has indicated that he had a “very awful feeling” about the economy, prompting him to propose a moratorium on Tesla employee recruiting and the dismissal of 10% of the company’s present workforce.
Source: The Blaze