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US mulls security reviews for Elon Musk deals, including Twitter Buy

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US mulls security reviews for Elon Musk deals including Twitter Buy

Bloomberg News reported on Thursday that Biden Administration officials are debating whether the United States should submit some of Elon Musk’s projects to national assessment, including the sale of Twitter Inc and SpaceX’s Starlink satellite network.

The CEO of SpaceX recently announced plans to stop Russia’s conflict in Ukraine on Twitter. However, he also said that SpaceX could not continue to finance its Starlink internet service in Ukraine. Later, he changed his mind and said he would still pay for the service.

According to individuals who spoke to Bloomberg, conversations about reviewing Musk’s enterprises are still in their early stages. Officials in the U.S. government are also considering what mechanisms, if any, may be available to enable the federal government to evaluate Musk’s ventures.

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According to the article, one way to assess Musk’s business activities is via the legislation controlling the Committee on Foreign Investment in the United States (CFIUS), which reports to the US Department of Treasury.

According to Bloomberg, the existence of foreign investors in Musk’s consortium is one aspect of the $44 billion Twitter transaction that might prompt a CFIUS examination.

Binance, a cryptocurrency launched in Shanghai, and Saudi Arabian businessman Prince Alwaleed bin Talal are included in the group.

A representative for the U.S. According to the Treasury Department, CFIUS doesn’t make public statements about deals that it may or may not be scrutinizing.

Reuters reached out to Twitter and SpaceX for comment, but neither company responded immediately.

In May, Musk said he would cancel the purchase of Twitter, claiming the firm had overstated the number of spam and bot accounts on the social media site. This sparked a string of legal disputes between the two sides.

Musk changed his mind earlier this month and said he would carry out the agreement under its original provisions.

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