Saudi Prince Invested in Twitter

by Mike on December 24, 2011

in News

Saudi media has recent published a news about the purchase of $300 million worth of stock of Twitter, the worldwide famous micro- blogging company by Prince Alwaleed Bin Talal who is well known as the one of the most well known Corporate investors in the world.
Twitter has been pretty mysterious to the investors around the world due to its less efficient commercial modeling in spite of being an amazingly popular service among the Internet users. In fact, this micro-blogging website has been increasing its users with an impressive number every month. Yet their commercial business plans are not strong and effective enough to attract investors for investing into this company. However, the billionaire Prince Alwaleed Bin Talal has got property which worth about $20 billion. Alwaleed Bin Talal who is the nephew of King Abdullah of Saudi Arabia, has made this investment into this technological company through his Kingdom Holding Company. This company is gaining its popularity due to their impressive performance in the cyber world. Besides, this company owns about 7% of News Corporation’s share which comes just after Rupert Murdoch.

Kingdom Holding Company has announced that, this company had been interacting for several months with this micro-blogging service and is now at last preparing for due diligence. Besides, this company has also stated about the possible opportunities that have been found to be quite promising through their market research on this micro-blogging service. More importantly, it has been found out that, the Prince is really impressed about their high user base growth in creating a global impact.

Despite of their impressive service in the social media sector and popularity among millions of users, Twitter has been trying hard to start earning based on their increasing influence. However, Kingdom Holding Company firmly believes that, this micro-blogging service can create amazing influence to the social media industry due to their unique business ideas which are making significant effect amongst all the rivals out there. Hal Stokes, who is the social media director of Essence, has explained about the decision that has been taken by the Kingdom Holding Company. He has stated that, this has been an impressive decision in case of business purpose. He has also pointed out that, most of the popular companies are now technology oriented and media has been transforming as a social media. Therefore, it has been the perfect business decision to diversify the investments that has been done by the Prince.

Hal Stokes also believes that, this deal will not create any significant impact on the day to day operations of Twitter as most of this micro-blogging website’s followers know what has been going on in the last few months. He has also stated that, if the Internet users get what they need from a service they would continue using it and they are the final decision makers for the social media services.

According to the data provided by an official’s, DST Global’s has got about $400 million for the 5% stake of Twitter’s share which has been valued at $8 billion in the month of August 2011. Considering that, Alwaleed’s investment should be counted as something close to 3.75% of the current total stocks owned by Twitter.

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