The United States Securities and Exchange Commission (SEC) is not letting go of Elon Musk. The American stock exchange authority is seeking an injunction from a federal court to compel the billionaire to testify as part of its investigation into the turbulent takeover of Twitter last October.
The SEC is tracking down Elon Musk in the Twitter affair
The United States Securities and Exchange Commission (SEC) does not want to let go of the matter. This request filed on November 2 marks a new escalation in the legal confrontation between Musk and the SEC. The businessman initially agreed to testify in September, before withdrawing. His lawyers argue that his past statements should be enough.
But for the SEC, new questions arise about the exact conditions under which Musk bought Twitter for $44 billion. The authority suspects irregularities and wants to push its investigation, even if it means forcing the hand of the Tesla boss.
This request injunction reveals the SEC’s determination to shed light on this controversial agreement. It serves as a test to test the independence of the stock market authority in the face of the powerful in tech.
Advertisers are reducing their advertising spending on
In addition to the problems with the SEC, Elon Musk must also manage the growing discontent of advertisers. Recently, the billionaire faced backlash following his response to an anti-Semitic conspiracy theory. This pushed several major brands to suspend their advertising campaigns.
Most recently, IBM followed suit after an ad from the company was displayed alongside a Holocaust denial tweet. Fearing being associated with such hateful content, IBM said it was “temporarily” suspending its Twitter ads. The IT giant reiterated its “zero tolerance” policy towards hate speech.
Other advertisers are likely to follow, undermining Twitter’s business model. For Elon Musk, repeated controversies over content moderation could therefore have serious financial consequences.
Increasing economic pressure is therefore being exerted on the billionaire. Between the vindictiveness of the SEC and the mistrust of advertisers, Elon Musk is more than ever in turmoil. His $44 billion bet on Twitter could turn into a resounding stock market crash if he doesn’t quickly regain control.
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