Saudi prince buys share of Twitter for $300m
TWITTER’S latest major investor is Prince Alwaleed bin Talal, a Saudi billionaire with an impressive investment record.
He has invested $300m (€231m) into the American technology company, which has yet to come up with a killer commercial model.
Alwaleed, the nephew of Saudi Arabian King Abdullah, is one of the wealthiest people in the world, with a net worth of $19.6bn, according to Forbes magazine’s estimation.
He already owns a 7pc stake in News Corporation, a ‘sizeable share’ of Citigroup, and is understood to be starting his own cable news channel.
The prince bought the Twitter stake after “months of negotiations” through his Kingdom Holding Company.
He said: "Our investment in Twitter reaffirms our ability in identifying suitable opportunities to invest in promising, high-growth businesses with a global impact."
Twitter had no further comment to make beyond the details of the investment.
The San Francisco microblogging company is now valued $8.4bn, despite having yet to turn a sizable profit. It has more than 100 million registered users, who post approximately one billion tweets a week. One of its other major investors is Yuri Milner, the Russian billionaire who owns Digital Sky Technologies and also has major stakes in Facebook and Zynga.
Last year Twitter rolled out its first commercial product: a promoted tweet. It then followed up with promoted trends and search results on the site. However, according to most technology analysts, it has yet to realise its full commercial potential.
Twitter played a considerable role in the dissemination of real-time information during the Arab Spring over the last two years.