President Biden stated on Wednesday that it is “worth investigating” the role of foreign investors in supporting Elon Musk’s $44 billion acquisition of Twitter.
Mr. Biden made the remark in response to a question at a press conference regarding whether Musk’s actions — including securing the support of Prince Alwaleed bin Talal of Saudi Arabia and Qatar Holdings, an investment firm owned by the Arab country’s sovereign wealth fund — posed a threat to U.S. national security.
Mr. Biden stated, “I believe Elon Musk’s cooperation and/or technological contacts with other nations merit examination.” “I am not asserting that he is engaging in inappropriate behavior, but it is worth investigating.”
According to Reuters, Musk financed a significant portion of the acquisition with his own wealth, but $7.1 billion was given by equity investors including fellow billionaire Larry Ellison as well as international sources including Prince Alwaleed and Qatar Holding.
The significance of Twitter “as a venue for political discourse in the United States” has ramifications for national security, researchers from the liberal Brookings Institution stated on November 4. According to them, the Committee on Foreign Ownership in the United States, or CFIUS, which examines the national security implications of foreign investment in U.S. enterprises, should scrutinize the Twitter acquisition.
Twitter requests the return of dozens of former employees days after major layoffs. 06:11
“Given the evolving trends in CFIUS decisions in other cases, President Biden would have strong grounds for blocking Musk’s acquisition of Twitter or, at the very least, compelling minority foreign investors to sell their equity to parties that would not pose a threat to national security,” they said.
Other investors in Musk’s purchase of Twitter, according to Brookings, include ties to China and the United Arab Emirates.
Mr. Biden’s remarks follow a tumultuous beginning to Musk’s ownership of Twitter, which has featured an advertiser rebellion over concerns about the social media service’s control of content under his leadership and the dismissal of 3,700 people, or approximately half of its workforce. Musk’s fortune has decreased by $100 billion this year due to the decline in Tesla’s stock price as a result of the Twitter controversy.
Wednesday, Wedbush Securities analyst Dan Ives wrote in a research note, “The Twitter circus show has been an unmitigated fiasco from every viewpoint since Musk purchased the platform for the world to witness.” “When does it end? Tesla or Twitter is the main focus. Is Musk’s and Tesla’s global brand being harmed or tarnished by his Twitter train wreck?”