Twitter Stock Skids As Biden Gov't Mulls Security Review Of Musk Businesses

Shares of Twitter dropped as much as 8% in pre-market trading last Friday as investors braced for some last-minute uncertainty around Elon Musk’s $44 billion deal to buy the company, Clare Duffy reported for CNN Business.

Photo Insert: The stock reaction followed a Bloomberg report that Biden administration officials may subject some of Musk’s ventures to national security reviews, including the planned Twitter takeover.

The stock reaction, which rebounded somewhat later in the morning, followed a Bloomberg report that Biden administration officials are in early discussions about possibly subjecting some of Musk’s ventures to national security reviews, including the planned Twitter takeover.

Asked by CNN, the administration pushed back on the report, which cited people familiar with the matter.

“We do not know of any such conversations,” National Security Council Spokesperson Adrienne Watson said in a statement. A Treasury spokesperson said that the Committee on Foreign Investment in the United States “does not publicly comment on transactions that it may or may not be reviewing” by law and practice.

Among the equity investors who committed to provide financing to help Musk fund the deal are several foreign entities, including the Qatar sovereign wealth fund and Saudi Arabian Prince Alwaleed bin Talal, who was already one of Twitter’s largest investors prior to Musk’s proposed takeover.

It’s unclear what, if any, impact the reported security review could have on completing a deal that has already been subject to months of uncertainty. Musk has one week remaining to close the deal or face a rescheduled trial in the Delaware Court of Chancery that could result in him being forced to acquire the social media firm.

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