FCC rejects call to block Elon Musk’s Twitter purchase
Nickie Louise
Posted On April 27, 2022
Federal Communications Commission (FCC) Commissioner Brendan Carr on Wednesday rejected a call from the Open Markets Institut to block Elon Musk’s purchase of Twitter. The call to block the deal came just a few days after Twitter accepted Musk’s bid to buy the social giant for $44 billion.
In a statement, Carr said the FCC “has no authority to block Elon Musk’s purchase of Twitter, and to suggest otherwise is absurd.” He added, “I welcome the full FCC making it clear that we will not entertain these types of frivolous arguments.”
On Tuesday, the Open Markets Institute, which describes itself as a group that “works to address threats to our democracy … and our national security,” issued a press release (below) about how the U.S. government “can block” the sale to Musk.
The group further claimed that the deal “poses a number of immediate and direct threats to American democracy and free speech,” without elaborating, although it cited the Telegraph Act of 1860 and other regulations. Open Markets is headed by Barry C. Lynn, described as a left-leaning journalist who previously worked for Mother Jones, the Financial Times, Forbes, and other outlets.
Meanwhile, Open Market Institute is the only group not happy about the sale of Twitter to Musk. Berkeley professor and former Secretary of Labor Robert Reich also took Twitter to comment on the deal.
“Zuckerberg owns Facebook, Instagram, and WhatsApp.
Jeff Bezos owns the Washington Post.
Elon Musk owns Twitter.
When multi-billionaires take control of our most vital platforms for communication, it’s not a win for free speech. It’s a win for oligarchy.”
Zuckerberg owns Facebook, Instagram, and WhatsApp.
Jeff Bezos owns the Washington Post.
Elon Musk owns Twitter.
When multi-billionaires take control of our most vital platforms for communication, it’s not a win for free speech. It’s a win for oligarchy.
— Robert Reich (@RBReich) April 26, 2022
On April 25, Twitter sold itself to Musk for $44 billion. Under the terms of the agreement, Twitter stockholders will receive $54.20 in cash for each share of Twitter common stock that they own upon closing of the proposed transaction. The purchase price represents a 38% premium to Twitter’s closing stock price on April 1, 2022, which was the last trading day before Mr. Musk disclosed his approximately 9% stake in Twitter.
Contrary to the Open Market Institute’s statement, Musk said he wants to “make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spambots, and authenticating all humans.”
“Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated,” said Mr. Musk. “I also want to make Twitter better than ever by enhancing the product with new features, making the algorithms open source to increase trust, defeating the spambots, and authenticating all humans. Twitter has tremendous potential – I look forward to working with the company and the community of users to unlock it.”
Below is a screenshot of the FCC statement.
A screenshot of the Open Markets Institute press release.
