The finalization of Elon Musk’s venture into Twitter has hit a bump in the road, as the Wall Street Journal reports that U.S. regulators are investigating the Tesla CEO for the delayed disclosure of his sizable stake in the social media giant.
Sources close to the situation told The Journal the Securities and Exchange Commission (SEC) is analyzing the case that resulted in Musk’s late submission of a form investors must file when they purchase more than 5-percent of a company’s shares.
Musk filed the form at least ten days after the date when he was supposed to after the entrepreneur disclosed on April 4 that he had purchased a 9.2% stake in Twitter. The newspaper reports that he should have filed his disclosure by March 24 regarding SEC Rules.
Musk offered to buy Twitter on April 14, and the social media outlet accepted his bid on April 25. However, the agreement is still required to pass shareholder and regulatory authorization.
Regardless of the situation, any possible lawsuit that the SEC might bring would be unlikely to disturb the deal closing, The Journal added.
Eduardo Razo is the Assistant Content Editor for BNM, which includes writing daily news stories on the news media industry. He can be found on Twitter @eddierazo_ or you can reach him by email at eddie1991razo@gmail.com.
