Prince Alwaleed bin Talal bin Abdulaziz of Saudi Arabia becomes the new twitter’s second-largest shareholder.
A few key questions remained unanswered after Elon Musk acquired Twitter for $44 billion. Chief among the question is whether a group of 19 investors would follow through on the $7.1 billion equity commitment the Tesla chief made in May – back before tech stocks plummeted.
However, a piece of the question was answered when the Saudi prince announced in the Securities and Exchange Commission Filing that he’d made good on his $1.9 billion commitment making him twitter’s largest shareholder but Musk.
The Saudi Prince made a tweet on Friday, “Dear friend “Chief Twit” @elonmusk Together all the way @Twitter”, with an image of the statement from the prince’s publicly traded invest investment company, Kingdom Holding, and his personal office announcing that the prince was repurchasing his 34.948 million shares of Twitter, making him Twitter’s second-largest shareholder and valued at $54.20 per share based on Musk’s offer. Currently, Alwaleed and Kingdom Holding jointly own 4% of Twitter. (According to an SEC filing, Alwaleed owns 95% of Kingdom Holding).
The Saudi prince becomes one of the two investors who has agreed to have invested with Musk. In an SEC filing, the Qatar investment fund disclosed that it had committed the $375 million that had been previously agreed upon. Several government officials have expressed their worries over national security as a result of these middle eastern investments, including senator Chris Murphy (D-Connecticut) who called for a review in a tweet on Monday by the committee on foreign investment in the U.S (aka CFIUS).
Alwaleed was initially a vocal critic of musk taking over Twitter. On April 14 he tweeted, “one of the largest & long-term shareholders of Twitter, @kigdom_KHC & I reject this offer”. In line with this, a follow-up tweet was made by Musk questioning the Kingdom’s view on journalistic freedom of speech. Alwaleed responded on the same thread on May 5 that it was “great to connect with you my “new” friend @elonmusk”.
On May 13, Musk tweeted about a $44 billion takeover of the social media company being put on hold sending shares tumbling, on that same day, Alwaleed purchased $20 million of Twitter stock, only to sell the same for a laughably negligible $1.7 million trading loss. Alwaleed appears to have changed his mind for good, so it’s unlikely that the buyer’s remorse or wished to express his unhappiness at the moment. When contacted for comment, an Alwaleed spokesman did not react right away.
Alwaleed tweeted in April when he was still trying to stop Musk’s purchase, “I don’t feel the suggested offer by @elonmusk ($54.20) comes close to the intrinsic worth of @twitter given its growth possibilities”. Alwaleed reportedly still holds to that belief and looking forward to a significant investment return.