SEC Escalates Conflict with Elon Musk

Federal agency probing legality of Musk's $44 billion purchase of Twitter

Some people might be inclined to think that Elon Musk’s purchase of Twitter (which he renamed X) on October 28, 2022 was for a fair price. At that time, he paid $54.20 per share for a company that was trading at $38.76, or $15.44 over the market price (at 39% premium).

Given that Mr. Musk was not already the owner of any broadcasting or internet media company, there could be no antitrust laws in question. So what was the problem—that is, why is the SEC suing him for allegedly breaking securities laws?

In May of this year, the SEC announced it was investigating why Musk failed to file the correct form. The agency subpoenaed him to appear at its San Francisco office to provide testimony. Musk has stated he regarded this action as harassment and that he has had enough of the agency’s queries.

Reuters just published a report on this ongoing feud between the powerful federal agency and the world’s richest man, though it’s not very illuminating.

Musk has vehemently expressed his commitment to maintaining free speech in one of the nation’s largest public forums. By spending billions of his own personal funds, he put his money where his mouth is.

One wonders what the SEC’s actions in this matter are really all about.