Twitter’s 2nd Largest Shareholder Saudi Prince Says He Rejects Elon Musk’s Offer for the Company

Saudi Prince Alwaleed Bin Talal Alsaud, Twitter’s second-largest shareholder (TWTR34), said on Thursday that he would reject Elon Musk’s offer to buy all of the company’s shares and go private.

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

“I do not believe that the offer proposed by Elon Musk ($54.20) comes close to the intrinsic value of Twitter given its growth prospects,” Alwaleed Talal wrote on the social network itself. (see below).

“As one of the biggest long-term shareholders of Twitter, Kingdom KHC and I rejected this offer,” said the Saudi royal family member.

Kingdom KHC is an investment holding company based in Riyadh, capital of Saudi Arabia, and Alwaleed Talal is chairman of the company’s Board of Directors.

Talal was the 20th richest person in the world in 2015, according to Bloomberg’s Billionaires Ranking, but decided to donate his entire $32 billion fortune to philanthropic causes.

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

‘Best and Last Offer’

But Elon Musk has recently started buying the company’s shares, and on April 4 he revealed that he had taken a 9.2% stake in the social media giant, becoming the company’s biggest 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 and has an estimated fortune of $219 billion according to Forbes.

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

“I am offering to buy 100% of Twitter for $54.20 per share in cash, a 54% premium over the day before my investment in Twitter, and a 38% premium over the day before my public announcement of my investment,” Musk said in a letter sent to Twitter president Bret Taylor.

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another proposal

The value, however, is below the share’s peak (US$ 77), reached on February 26, 2021. The shares rose by 12% in pre-market negotiations, after the proposal was announced, but began to operate close to stability on the NYSE (New York Stock Exchange) as of 11:30 am.

In a statement, Twitter said it “has received an unsolicited, non-binding proposal from Elon Musk to acquire all of the company’s outstanding common stock” and that it will “carefully review the proposal to determine the course of action it believes is in the best interest of the company.” of the company and of all shareholders of Twitter”.

After the proposal was made public, Justin Sun, founder of a crypto asset company called Tron, also said on Twitter that he would increase the offer to $60 per share to buy the social network. Sun said the company “is far from unleashing its full potential.” “I would love to see Twitter become crypto-native and Web3-friendly.”

Freedom of expression

Musk said in the letter to Bret Taylor that the company needs to go private because it “cannot prosper nor serve” free speech in its current state. “Twitter needs to be transformed like a private company.”

“I invested in Twitter because I believe in its potential to be the 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 ends the document by saying that “Twitter has extraordinary potential”. “I will unlock it.”

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