Elon Musk’s Twitter Purchase Under FTC Radar; Musk Could Be Temporary CEO?

Elon Musk and Twitter have been under the radar for the past few weeks now. Things could change as the US Federal Trade Commission is reviewing Musk's takeover of Twitter for USD 44 billion. A probe into the new Twitter deal could alter the dynamics of the takeover, inside sources reveal.

Elon Musk's Twitter Deal Under FTC Radar

A report from Bloomberg quotes a source familiar with the deal, explaining the upcoming FTC probe. The report states FTC will decide in the coming days whether it will conduct an in-depth antitrust probe of the Twitter takeover. A detailed probe will further delay the closing of the deal in the coming months.

To note, the Federal Trade Commission is already investigating the initial purchase of the 9 percent state that Elon Musk bought of Twitter. The probe aims to find whether Musk complied with the antitrust reporting required when he made the initial purchase in early April. The report further cites antitrust experts, who say "little likelihood the agency will find any evidence that Musk's purchase of Twitter is illegal under antitrust law."

Elon Musk As Temporary CEO?

In related news, Elon Musk could become the temporary CEO of Twitter once the USD 44 billion deal closes, reports CNBC. Presently, Parag Agrawal is the CEO of Twitter, who rose to the position in November. Agarwal is expected to remain the CEO until the sale of Twitter is completed.

However, the new Federal Trade Commission probe could further delay the final aspect of the deal. In this case, one can expect Agarwal to continue to rein Twitter. Moreover, a lot of political and business angles of the deal have been key deciding factors for the Elon Musk Twitter deal.

To note, Elon Musk's Tesla shares dropped over eight percent, as investors believe Musk's involvement in Twitter would distract him from running the electric car company. On the other hand, Twitter shares rose roughly four percent as investors feel the deal will go through.

The antitrust probe and the FTC scrutiny could delay the Twitter deal. However, it looks like Elon Musk will continue to take over the reins of the microblogging social media platform. It remains to see how things will turn out for Twitter.