The United States government is currently mulling over a national security review of Elon Musk’s bid to purchase Twitter for $44 billion.
If it happens, the President could kill the deal before closing.
Musk plans to make the purchase with the help of foreign investors, including Saudi Arabia’s Prince Alwaleed bin Talal, Qatar’s sovereign wealth fund, and Binance Holdings (founded by a Chinese businessman).
It’s those investors who have the US government worried.
The Committee on Foreign Investment in the US (CFIUS), which reviews foreign takeovers of American businesses, could choose to check the deal. CFIUS will initiate a security review if a “transaction threatens to impair the national security of the United States,” per federal regulations.
After their review, they could recommend the President suspends or prohibits the deal.
There is a recent precedent for tech deals to be kiboshed. In 2019, former POTUS Donald Trump blocked Beijing Shiji Information Technology Co’s attempt to buy hotel management platform StayNTouch after CFIUS recommended a prohibition.