We are now in that part of the Elon Musk-Twitter drama where – as is the case with some long-running TV shows – the storyline is off track. Of course, this is not a TV show, although there will probably be one John Hill to Play Elon Musk | And what looks outside the wall is just life in the world of Musk. It’s a bit like the alternate reality that Donald Trump is creating to replace a less comfortable reality. In Musk’s case, he’s so obsessed with using red herring on spam bots on Twitter to exit the purchase of the company that today he had the audacity to ask: “Hi @SECGov, is anyone home?“If the SEC is investigating something that stems from this deal, it seems safe to say there won’t be as many spam bots on Twitter.”
In fact, as The Wall Street Journal writesThe SEC is investigating whether Musk violated the disclosure rules in the way he originally reported his investment, similar to the FTC investigation we reported earlier. And based on details in the lengthy filing of securities on Twitter today, these investigators have a lot to dig into. Most importantly, we learned that Musk contacted members of the Twitter board to reveal that he had bought more than 5% of Twitter nine days before revealing it publicly on April 4. At the time he made this disclosure – when he was categorized as a passive shareholder who was not interested in “Change or effect on control” of the company – he had told the directors of Twitter that he could buy the company and was invited to join the board! So yes, the passive category seems to be, and it’s not quite right.