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Business techcrunch.com ·1h · 1 min

FTC approves acquisition of Mesh startup by Elon Musk company

The U.S. antitrust authority has cleared the purchase of the company founded by former SpaceX employees, which emerged from stealth mode in February with a $50 million Series A round.

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The U.S. Federal Trade Commission (FTC) has authorized the acquisition of startup Mesh by a company linked to Elon Musk. The antitrust decision removes the primary regulatory hurdle for closing the deal, though the financial terms of the transaction have not been disclosed.

Mesh caught the attention of the tech market when it emerged from stealth mode in February. At the time, the company announced it had raised $50 million in a Series A funding round to boost the development of its projects.

The startup's profile is marked by a strong connection to Musk's ecosystem. The company was founded by former SpaceX employees, indicating prior technical alignment with the billionaire's operations. The acquisition suggests a strategy to reabsorb talent and technologies developed by former direct collaborators.

The FTC's approval comes during a period of increased regulatory scrutiny over major mergers and acquisitions in the U.S. technology sector. The agency's green light was a necessary step for the transaction to move forward without legal objections related to competition.

With the approval completed, Mesh's team and technology are expected to be integrated into the portfolio of companies led by Musk. The move reinforces the trend of consolidating tech assets under the entrepreneur's umbrella, bringing together initiatives from different origins into his core operations.

Sources
Did the FTC approve Elon Musk's acquisition of Mesh?

Yes, the U.S. Federal Trade Commission (FTC) has authorized the acquisition of startup Mesh by a company linked to Elon Musk, removing the primary regulatory hurdle for the deal.

What is Mesh and who founded the startup?

Mesh is a tech startup that emerged from stealth mode in February after raising $50 million in a Series A round. The company was founded by former SpaceX employees.

Why did Elon Musk acquire Mesh?

While the financial terms were not disclosed, the acquisition suggests a strategy to reabsorb talent and technologies developed by former direct collaborators, integrating them into Musk's core operations.