NewsTesla Inc. CEO Elon Musk’s agreement to acquire Twitter Inc. for $44 billion faces several obstacles before it can become reality, though lawyers told Law360 on Wednesday these are unlikely to derail the deal.
Musk’s acquisition may be reviewed by the Federal Trade Commission and U.S. Department of Justice, which can both block acquisitions they deem threats to competition. Meanwhile, any legal challenge could face difficulty given that Musk’s primary holdings — electric-car maker Tesla and rocket company SpaceX — don’t overlap with social media.
“The acquisition of Twitter by Elon Musk isn’t the kind of deal that the government usually challenges,” said Farrell Fritz partner Alon Y. Kapen, who steers corporate transactions and mergers. “The kind of deal the government usually challenges is when a company is buying a competitor, or when an acquisition allegedly unfairly benefits the acquirer in another part of its business.”
Read the full article on Law360 here: Musk Faces A Few More Hurdles Before Acquiring Twitter – Law360
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