Twitter Falls 10% on Report Biden Considers Security Reviews for Musk Deals

By Senad Karaahmetovic

Shares of Twitter (NYSE:) are down about 10% on the report that the Biden administration considers reviewing some of Elon Musk’s deals on a national security basis.

Officials are looking at Musk’s deal to acquire Twitter, as well as SpaceX’s Starlink satellite network, according to Bloomberg News. The Biden administration is growing increasingly “uncomfortable” with Musk’s recent comments, including threats to stop supplying Ukraine with Starlink internet access, the report added.

On Twitter, concerns are mostly focused on the fact that Musk teamed up with foreign investors – Prince Alwaleed bin Talal of Saudi Arabia, Qatar’s sovereign wealth fund, and crypto exchange Binance – to acquire the social media company.

While these discussions are still at an early stage, officials are reportedly reviewing available tools that could help allow them to review Musk’s deals. One of the options includes the Committee on Foreign Investment in the United States, which is an inter-agency committee focused on the national security implications of foreign investments in U.S. companies or operations.

Bloomberg also noted that Musk and Twitter are engaged in intense talks as they race to close the deal by October 28. Both sides hope to have the deal concluded by that date with one bank, which is involved in the deal, telling its staff to expect a borrowing notice from Musk on Tuesday.

On the same day, the Washington Post reported that Musk plans to cut almost 75% of Twitter’s staff as part of his deal to take the company private. Twitter employs about 7,500 people with WaPo saying Musk could cut that number down to about 2,000 staff.

Bloomberg reported that Twitter sent an internal memo on Thursday night to inform employees that there were “no plans for any company-wide layoffs.”

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