A Saudi prince, who is the long-term shareholders of Twitter, says that he rejects Elon Musk's "proposed offer" of $43 billion to buy the micro-blogging site. The prince's statement comes hours after the Tesla CEO Thursday made his intentions with Twitter Inc. official, offering to purchase the company at $54.20 per share in cash.
The internet and social media platforms were abuzz after Elon Musk's announcement. Saudi businessman Prince Al Waleed bin Talal, who is chairman of Kingdom Holding Co., Rotana and Al Waleed Philanthropies, was not much impressed with the offer.
"I don't believe that the proposed offer by Elon Musk ($54.20) comes close to the intrinsic value of Twitter given its growth prospects. Being one of the largest and long-term shareholders of Twitter, Kingdom Holding Company (KHC) and I reject this offer," the Prince Al Waleed bin Talal tweeted.
The prince also shared a grab of a tweet posted by him in 2015 in which he had announced that he and the company -KHC- had raised their ownership in Twitter to 5.2 per cent.
— الوليد بن طلال (@Alwaleed_Talal) April 14, 2022
On 4 April, Elon Musk, with a 9.2 per cent stake in Twitter Inc., was made the largest shareholder of the social media-company, topping co-founder and ex-Chief Executive Jack Dorsey.
As per the securities filing, Elon Musk on 14 March reported owning almost 73.5 million shares of Twitter.
According to the Bloomberg Billionaires Index, Elon Musk is the world's richest person with a net worth of $273 billon.
After Elon Musk's proposal to buy the remaining shares in Twitter Inc., the company said that its board of directors would "carefully review the proposal to determine the course of action that it believes is in the best interest of the company and all Twitter stockholders."
Elon Musk offer to buy Twitter
Tesla CEO Elon Musk on Thursday (14 April, 2022) offered to buy Twitter for $54.20 a share saying the social media company needs to be transformed privately, a little over a week after revealing a 9.1 per cent stake in the company. Musk’s offer values Twitter at about $43 billion.
"I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy," Musk wrote in a letter sent to Twitter Chairman Bret Taylor and disclosed in a securities filing.
Elon Musk feels that Twitter needs to go private because it can "neither thrive nor serve" free speech in its current state.
"As a result, I am offering to buy 100 per cent of Twitter for $54.20 per share in cash, a 54 per cent premium over the day before I began investing in Twitter and a 38 per cent premium over the day before my investment was publicly announced. My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder," Elon Musk said.