Bloomberg reported late Thursday that officials inside the Biden administration are exploring whether some of Elon Musk’s commercial initiatives, such as his takeover attempt for Twitter and the operation of his Starlink network of satellites, could be subject to national security scrutiny.
According to the news site, US authorities are uneasy with Musk’s statement that he would discontinue sending the Starlink satellite service to war-torn Ukraine, despite the fact that he claims the venture has cost him $80 million. Bloomberg cites “people familiar with the subject” as saying that the president’s tweets, which have taken a more pro-Russian stance in the continuing conflict with Ukraine, have also caused alarm. That he wants to purchase Twitter alongside a group of foreign investors is very worrisome.
While preliminary talks are still ongoing, the Committee on Foreign Investment in the United States (CFIUS), a secretive government panel that reviews mergers that could result in a foreign company controlling an American business, is one possible avenue for the US government and intelligence community to review Musk’s business ventures. Deal-killing CFUIS reviews are commonplace.
Foreign investors, including Prince Alwaleed bin Talal of Saudi Arabia, Binance (a cryptocurrency exchange created and controlled by a Chinese Canadian business leader), and Qatar’s sovereign fund, may force a reconsideration of Musk’s $44 billion offer for Twitter.
Musk, the wealthiest man on earth, has used Twitter in recent weeks to propose solutions to Russia’s conflict with Ukraine that are likely to be accepted by Vladimir Putin. Musk tweeted on Tuesday that SpaceX, his company that runs the Starlink satellite network, is “losing” around $20 million per month providing the service for free to Ukraine, but “we’ll keep doing it (sigh).”
While a spokeswoman for Musk did not immediately react to a request for comment, Musk himself expressed his delight and agreement with the statement “It would be hysterical if the government banned Elon from over paying for Twitter” on Thursday.
US authorities have often investigated Musk in the past. After Musk admitted to using weed on comedian Joe Rogan’s podcast in 2018, the Pentagon began reviewing his federal security clearance in 2019. Given that the business he co-founded and now heads is approved to launch military espionage satellites for the US government, and given that NASA contracts require enterprises to “keep a program for establishing a drug-and alcohol-free workforce,” his top-secret clearance was under review.
No immediate response was given to demands for comment from the White House or the Treasury Department, which is responsible for CFUIS.
