Elon Musk’s $44 billion agreement to acquire Twitter is still under review by regulatory departments, and it must get approval from shareholders.
Friday 3 June – Advocacy groups launched a petition to block Elon Musk from buying Twitter after clearing the purchase for the scrutiny of US antitrust regulators.
Twitter announced that the deal with Musk to purchase the company was one step closer to being signed after the passage of a deadline to be overturned in a US Antitrust Law.
The Tesla chief’s $44 billion deal to buy the messaging platform One-to-Many private remains subject to review by the other regulators. It must also get approval from shareholders.
“Elon Musk is a wolf in expensive sheep’s clothing whose Twitter takeover is motivated by ego and grievance,” Accountable Tech’s Director Nicole Gill said.
“If we don’t stop this deal, he’ll hand a megaphone to demagogues and extremists, who will cheer him as they incite more hate, harm, and harassment.”
A “Stop The Deal” campaign initiated by a coalition of non-profit organizations aims to stop the acquisition.
Musk was made a critical Twitter stockholder following the purchase of 73.5 million shares in April. Less than two weeks after, he made a hostile bid to buy the company.
The SEC has demanded Musk to clarify why he did not divulge his new stake in Twitter within ten days, particularly if he was planning to purchase the company.
“Your response should address, among other things, your recent public statements on the Twitter platform regarding Twitter, including statements questioning whether Twitter rigorously adheres to free speech principles,” regulators stated in an email.
Musk is also facing an action brought by shareholders who accuse that he pushed down the price of Twitter’s stock to provide himself with an escape route from the buyout offer or to give himself the chance to negotiate for a lower price.
The suit claims that the billionaire Tesla boss posted tweets and made statements to undermine the purchase.
The campaign will require the Securities and Exchange Commission (SEC) and other agencies to examine everything related to the takeover offer.
The group will also attempt to convince Twitter advertisers and shareholders to stay clear of Musk purchasing the tech firm in San Francisco.
The list of over 12 organizations involved in the campaign includes MoveOn, SumOfUs, Media Matters for America, and the Center for Countering Digital Hate.
The lawsuit seeks to obtain classification as a class action and calls for the Federal court situated in San Francisco to back the legitimacy of the agreement and pay shareholders any damages allowed by the law.
Musk tweets frequently controversial and inflaming comments about current events or other prominent figures with humorous or business-oriented comments.