June 21, 2024

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Saudi Prince, the second largest shareholder in Twitter, says he rejects Elon Musk's offer to the company

Saudi Prince, the second largest shareholder in Twitter, says he rejects Elon Musk’s offer to the company

Saudi Prince Al-Waleed bin Talal Al Saud, the second largest contributor to Twitter (TWTR34), on Thursday (14), that he would reject Elon Musk’s offer to buy all of the company’s shares and go into private ownership.

The founder of Tesla and SpaceX and the richest man in the world It offered to buy 100% of the social network for $54.20 a share, in a deal valuing the social network at more than $43 billion. (about 200 billion Brazilian reais at the current price).

On the same social network, Alwaleed Talal wrote: “I don’t think the offer proposed by Elon Musk ($54.20) comes close to Twitter’s intrinsic value given its growth prospects.” (see below).

“As one of the largest long-term contributors to Twitter, the Kingdom and I have rejected this offer,” said a member of the Saudi royal family.

Kingdom KHC is an investment holding company based in Riyadh, the capital of the Kingdom of Saudi Arabia, and Al-Waleed Talal is the Chairman of the Board of Directors.

Talal was in the 20th place among the world’s richest people in 2015, according to Bloomberg’s ranking of billionaires, But he decided to donate his entire fortune of $32 billion to charitable causes.

In the same year, the holding company and Alwaleed Talal acquired more than 5% of Twitter, more than the founder of the social network, Jack Dorsey.

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“Best and last offer”

But Elon Musk started buying the company’s stock recently, and on April 4, Unveiling a 9.2% stake in the social media giantTo become the company’s largest investor.

The founder of Tesla and SpaceX is a frequent user of the social network and has more than 80 million followers. Musk is currently the richest man in the world with an estimated fortune of $219 billion. According to Forbes magazine.

On Thursday, he made an “unsolicited offer” to buy the rest of Twitter and make it private, saying it was the “best and last offer.” “If it is not accepted, I will need to reconsider my position as a shareholder.”

Musk said the message was sent to Twitter chief Brett Taylor.

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The value, however, is below the stock’s peak ($77), reached on February 26, 2021. Shares are up 12% in pre-market negotiations, after the proposal was announced, but are starting to work near stability on NYSE ( New York Stock Exchange) as of 11:30 a.m.

In a statement, Twitter said it had “received a non-binding, non-binding offer from Elon Musk to acquire all outstanding common stock of the company” and that it would “review the offer carefully to determine a course of action it believes is in the best interest of the company” for the company and all Twitter shareholders.

After the proposal was announced, Justin Sun, founder of a crypto-asset firm called Tron, said on Twitter that he would increase the offer to $60 per share for the social network. Sun said the company is “far from unleashing its full potential”. “I’d like to see Twitter become crypto and Web3 compatible.”

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freedom of expression

In his letter to Brett Taylor, Musk said the company needed to become private because it “cannot thrive and serve” free speech in its current state. “Twitter needs to transform like a private company.”

“I invested in Twitter because I believe it can be a platform for freedom of expression around the world, and I believe that freedom of expression is a social imperative for a functioning democracy,” he said.

The billionaire ended the document by saying that “Twitter has extraordinary potential.” “I will open it.”

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