(BFM Bourse) – The takeover of the social network by Elon Musk could be subject to the examination of a regulatory authority, according to Bloomberg. The action also suffered from the poor results of Snap, the parent company of Snapchat.
Twitter is not tweeting much on the stock market this Friday. Its stock fell about 4% on Wall Street around 5 p.m., weighed down by information likely to affect the takeover of the social network by Elon Musk and the fallout from Snapchat’s poor results for the tech sector.
According to a Thursday night Bloomberg report, the Biden administration is considering subjecting the Tesla boss’s $44 billion takeover bid to a national security review.
The US government is reportedly concerned about the presence of foreign investors, including Saudi prince and businessman Al-Walid bin Talal and the Qatar sovereign wealth fund, in the consortium from which Mr Musk secured more than 7 billion dollars to finance its operation.
Bloomberg says the national security review could be led by the Committee on Foreign Investment in the United States (CFIUS), chaired by the Treasury Department.
“In accordance with law and practice, CFIUS does not publicly comment on transactions that it may or may not review,” a Treasury spokesman told AFP.
Towards workforce cuts?
On Thursday, the Washington Post revealed that Mr. Musk plans to lay off almost 75% of Twitter’s 7,500 employees if he succeeds in buying the platform.
“Twitter has had to deal with cost cuts for too long due to lack of growth,” commented Wedbush’s Dan Ives. But for the analyst, a cut of almost three quarters of the workforce would be “far too aggressive” and would harm the health of the company.
Twitter also suffered from the bad signal sent Thursday evening by the social network Snapchat on the occasion of the publication of its third quarter results. The platform posted its lowest revenue per user since early 2021, illustrating the difficulties tech companies are facing in generating advertising revenue.
Snap, the parent company of Snapchat, tumbled nearly 29% at the start of New York trading.
(With AFP)
JM – ©2022 BFM Bourse
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