SEC letter to Musk questions tweet about Twitter acquisition

Securities and Exchange Commission asked millionaire Elon Musk For more information on tweets related to his $ 44 billion acquisition twitter What he recently tried to stop, Submission to new regulatory agency Thursday show.

This disclosure reveals how Mask expressed his commitment to trading with the SEC, even when he researched Twitter for information about spam accounts on the platform. It also indicates that the transaction could cause the mask to reappear on the agency’s crosshairs.

In a letter dated June 7, Musk’s lawyer and Skadden’s partner Mike Ringler answered a question sent by the SEC’s M & A office a few days ago.

The letter reiterates the clarifications SEC has asked for Mask, and should revise previous submissions based on his tweet that Twitter transactions “can’t move forward” until the company provides more information about spam accounts. Including whether or not it is.

“The term’cannot’ gives Musk and his affiliates the legal right to suspend or otherwise intend to complete the acquisition of Twitter under the terms of the merger agreement. It suggests that you are exercising, “the SEC said. For filing. “But note that Schedule 13D has not been modified to reflect the obvious significant changes that have occurred in the facts previously reported in Item 4 of Schedule 13D.”

Ringler didn’t think Musk’s tweet “caused the necessary modifications to the previously submitted Schedule 13D. Musk wants to get information to assess potential spam and fake accounts, but There were no significant changes. Mask plans and suggestions for the proposed transaction at that time. “

With Mask, CEO of SpaceX TeslaSince Trying to get out of the transactionClaims that Twitter did not support the termination of the contract because it did not disclose the information that Twitter should have and made a layoff without his approval.But twitter He said he was in compliance with the terms of the contract And now that market conditions have changed, Musk claims he’s just trying to withdraw.

Twitter sued Mask in Delaware Court of Justice I tried to keep him in the original agreement on Tuesday.

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See: How Elon Musk’s Twitter acquisition plan rocked Wall Street and social media