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Musk's delay in disclosing Twitter stake triggers SEC probe - WSJ

Published 05/11/2022, 05:53 PM
Updated 05/11/2022, 06:56 PM
© Reuters. FILE PHOTO: Elon Musk's Twitter profile is seen on a smartphone placed on printed Twitter logos in this picture illustration taken April 28, 2022. REUTERS/Dado Ruvic/Illustration
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(Reuters) - U.S. regulators are investigating Elon Musk's delayed disclosure of his sizable stake in Twitter Inc (NYSE:TWTR) last month, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.

Musk disclosed a 9.2% stake in Twitter to the U.S. Securities and Exchange Commission (SEC) on April 4, a delay of at least 10 days since surpassing the 5% threshold for revealing a shareholding, the report said.

An investor who crosses a 5% stake must file a form with the SEC within 10 days. It serves as an early sign to stakeholders that a big investor could seek to control the company.

The SEC declined to comment on the report and the Tesla (NASDAQ:TSLA) Inc top boss did not immediately respond to a Reuters request for comment.

Apart from the delay, Musk's April 4 filing also characterized his stake as passive, meaning he did not plan to take over Twitter or influence its management or business.

The next day, however, he was offered a position on Twitter's board, and a couple of weeks later, the world's richest man had clinched a $44 billion deal to buy the social media giant.

Musk, known for his candid Twitter posts, has a long history of skirmishes with the SEC.

© Reuters. FILE PHOTO: Elon Musk's Twitter profile is seen on a smartphone placed on printed Twitter logos in this picture illustration taken April 28, 2022. REUTERS/Dado Ruvic/Illustration

Most recently, a U.S. judge slammed him for trying to escape a settlement with the SEC requiring oversight of his Tesla tweets.

In April, the Information reported that the Federal Trade Commission is investigating whether Musk violated a law that requires companies and people to report certain large transactions to antitrust-enforcement agencies.

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