Twitter tumbles as US said to consider security review of Musk deals

Bloomberg on Friday cited people familiar with the matter as saying that this includes the deal for Twitter and SpaceX’s Starlink satellite network.

It was understood that US officials have grown uncomfortable over Musk’s recent threat to stop supplying the Starlink satellite service to Ukraine - he said it had cost him $80m so far - and what they see as his increasingly Russia-friendly stance following a series of tweets that outlined peace proposals favourable to President Vladimir Putin. They are also reportedly concerned by his plans to buy Twitter with a group of foreign investors.

Bloomberg cited sources as saying that the discussions are still at an early stage. Officials in the US government and intelligence community are weighing what tools, if any, are available that would allow the federal government to review Musk’s ventures, it said.

One possibility is through the law governing the Committee on Foreign Investment in the US to review Musk’s deals and operations for national security risks.

The interagency panel, known as CFIUS, reviews acquisitions of US businesses by foreign buyers. Sources told Bloomberg it is not clear if a CFIUS review - which would involve assessments by the Departments of State, Defense, and Homeland Security, among others - would offer the government a legal way to conduct a review.

There have also been reports that Musk plans to cut 75% of Twitter staff if he takes over the company.

At 1045 BST, Twitter shares were down 8.9% in pre-market trade at $52.44.