New York
CNN Business
—
Democratic Sen. Chris Murphy is asking at the federal govt to research nationwide safety considerations raised through Saudi Arabia’s function in Elon Musk’s takeover of Twitter.
Saudi Arabian Prince Alwaleed bin Talal helped Musk finance the $44 billion acquisition of Twitter (TWTR) through rolling over his
existing $1.9 billion stake within the social media corporate. The transfer makes Saudi entities the second-largest shareholder in Twitter – in the back of simplest Musk himself.
“We should be concerned that the Saudis, who have a clear interest in repressing political speech and impacting US politics, are now the second-largest owner of a major social media platform,” Murphy stated in a tweet on Monday.
The Connecticut Democrat instructed the Committee on Foreign Investment within the United States, referred to as CFIUS, to habits an investigation into the “national security implications” of the Saudi involvement. CIFUS, an interagency committee chaired through the USA Treasury Department, critiques takeovers of US companies through international consumers and has the facility to dam transactions that elevate considerations.
Even despite the fact that Musk already closed his takeover of Twitter past due remaining week, it’s going to nonetheless be topic to nationwide safety assessment.
According to the 2021 annual CFIUS report back to Congress, the panel has the authority to “review pending or completed transactions” if a member of the committee believes there are nationwide safety considerations.
“There is a clear national security issue at stake and CFIUS should do a review,” Murphy stated, noting that every other primary social media platform, TikTok, is owned through a Chinese corporate. “This is a dangerous trend, and we don’t have to accept it.”
Both the White House and the Treasury Department declined to remark in line with the decision from Murphy.
Earlier this month, Twitter stocks dropped after Bloomberg News reported Biden officers are in early discussions about in all probability subjecting a few of Musk’s ventures to nationwide safety critiques, together with the Twitter deal.
However, US officers driven again on that file. “We do now know of any such conversations,” National Security Council spokesperson Adrienne Watson stated in a observation on October 21.
