US officials are worried about Elon Musk’s recent threats to cease supplying Starlink to Ukraine and also his plans to purchase Twitter through foreign investors, as reported by Bloomberg.
The Biden administration is likely to review Elon Musk’s plan to purchase Twitter and SpaceX’s satellite internet service Starlink.
The White House is considering subjecting Musk’s ventures to national security inspections, Bloomberg reports(Opens in a new window) citing anonymous sources with knowledge of the issue.
As reported by Bloomberg, US officials were concerned by the Musk tweet in which he threatened to end Starlink access to Ukraine that came shortly after SpaceX informed the Pentagon that it couldn’t be able to afford the service in Ukraine.
US government officials also are worried about Musk’s plan of Ukraine to end its conflict with Russia by transferring the dispute-ridden area that is Crimea over to Russia’s Kremlin. Furthermore officials from the White House isn’t a fan of the manner in which Musk has enlisted a number of foreign investors like prince Alwaleed bin Talal of Saudi Arabia and Chinese cryptocurrency exchange Binance to help him buy Twitter.
So so far, Musk has only responded(Opens in the New browser) to the story with an on the floor with a smile after a user wrote: “It would be hysterical that the government would stop Elon from over-paying in exchange for Twitter.”
Musk has since also stated that SpaceX will continue to subsidize Starlink access to Ukraine and also claims that SpaceX has withdrawn the request for funding from Pentagon.
It is reported that the White House is still in preliminary discussions regarding conducting national security assessments of Musk’s ventures in business, According to Bloomberg. It is not clear which tools are available to the US has to regulate these companies.
The Biden administration is likely to tap to the Committee on Foreign Investment in the United States (CFIUS) which is a powerful regulator who could halt mergers when they pose a national security risk. However, the CFIUS is specifically designed to oversee foreign efforts to buy US businesses. Musk himself is an US citizen.
However, CFIUS could examine the foreign investors Musk has enlisted to assist in the purchase of Twitter. But, Musk originally intended on purchasing Twitter by using a significant portion of his own money and bank loans.
The news comes as The Washington Post reports(Opens in the New screen) the fact that Musk has informed investors that they can expect to cut more than 75 percent of the workforce of 7,500 at Twitter when the deal is concluded. A judge has granted Musk as well as Twitter until October. 28 to negotiate an agreement that will stay out of a court case concerning the acquisition.
