The Twitter stock slips on the stock market, losing 16% in the pre-market. To weigh the rumors about a possible national security review by the American administration on the activities of Elon Musk, including the acquisition of the social network and the Starlink satellite network.
Musk’s recent threat to stop supplying the Starlink satellite service to Ukraine – he said so far had cost him $ 80 million – asking for a bill from the White House. Many have described Musk’s conduct as increasingly favorable to Russia. Discussions are still at an early stage, and officials from the U.S. government and the intelligence community are considering what tools, if any, are available that would allow the federal government to review Musk’s initiatives. One possibility is through the law governing the U.S. Foreign Investment Committee known as the CFIUS to review Musk’s arrangements and operations for national security risks.
The panel examines US business acquisitions by foreign buyers. Also weighing on Twitter shares are reports that Musk aims to gut his workforce as part of his acquisition. The Washington Post reported that Musk’s plan for Twitter calls for a 75% staff reduction within a few months. Bloomberg News confirmed potential investors have been made aware of the cutback plan, along with an effort to double revenue within three years.
One element of the $ 44 billion Twitter deal that could trigger a revision of the CFIUS is the presence of foreign investors in the Musk consortium. The group includes Prince Alwaleed bin Talal of Saudi Arabia, Binance Holdings Ltd. – a digital asset exchange founded and operated by a native Chinese – and the Qatari sovereign wealth fund.