Asked about Musk and Twitter, FTC official says some deals help economy -Breaking
© Reuters. In this illustration, Elon Musk’s Twitter account can be seen in front of the Twitter logo on a smartphone. REUTERS/Dado Ruvic/Illustration
WASHINGTON, (Reuters) – Noah Phillips (a Republican member of the U.S. Federal Trade Commission) on Thursday avoided a question regarding Elon Musk’s plans to purchase Twitter (NYSE:). However, he said that some transactions are economically significant because they lead to improved management.
Phillips was speaking at Axios and was asked whether Musk should have Twitter. He declined to answer the question. “I am not speaking on the antitrust matter. It’s not something I want to talk about that we might or may not be looking at. He said that he doesn’t believe he was saying anything because a lot of investigations are not my business.
However, he continued to discuss how transactions in general have helped the U.S. economic.
We call it the “market for corporate control” and that is what has kept the American economy stable over time. Although there are many people who hate mergers, there has been an overall benefit to American society that allows companies to transfer to better managers, and people can bid to say that they can do the job better.
Phillips did not mention Musk or Twitter. Musk was the one who closed the deal to purchase Twitter in an acquisition that cost $44 billion.
FTC commissioner expressed concerns about the speed at which deals are being reviewed. He stated that one of the problems that was being threatened is the market for corporate control. “I think making that mistake” he added.
Lina Khan, the Democratic Chair of FTC, is currently in charge. The agency has been governed by two Republicans and one Democrat for several months. Democrats will now control the agency after Alvaro Bedoya, a Democrat was confirmed on Wednesday.