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Saudi Prince Alwaleed bin Talal rejects Elon Musk’s Twitter takeover bid

Saudi Prince Alwaleed bin Talal Al Saud, a billionaire who is also one of Twitter’s largest shareholders, tweeted that he will vote to reject Elon Musk’s $41 billion takeover bid for the company.

“I don’t think @elonmusk’s proposed offer ($54.20) comes close to @Twitter’s intrinsic value given its growth prospects,” he tweeted Thursday.

“As one of Twitter’s largest and longest-term shareholders, @Kingdom_KHC and I decline this offer.”

The Saudi king runs Kingdom Holding Company, the Riyadh-based conglomerate that first bought shares of Twitter in 2011 before the company’s IPO in 2013.

KHC also holds large stakes in a variety of companies, including the Four Seasons hotel chain, Uber, Lyft, and Citigroup.

Twitter shares traded higher on Wall Street earlier in the day but have since shed initial gains. Just after midday, shares of Twitter were down about 0.5%.

Members of Twitter’s board of directors called a meeting Thursday morning to discuss Musk’s offer.

Musk’s offer price of $54.20 per share, which comes just days after he turned down a seat on the social media company’s board, represents a 38% premium over Twitter’s trade close on 1 the company became public made.

Musk, the CEO of Tesla and SpaceX, is currently Twitter's second largest shareholder.
Musk, the CEO of Tesla and SpaceX, is currently Twitter’s second largest shareholder.
REUTERS

“I invested in Twitter because I believe in its potential to be the platform for free speech around the world, and I believe that free speech is a societal imperative for a functioning democracy,” Musk wrote in a letter to the Twitter chairman Bret Taylor.

“Since making my investment, it has been clear to me that the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company.”

“My offer is my best and final offer and if not accepted I would have to reconsider my position as a shareholder,” Musk said.

Musk’s takeaway offer for Twitter caps a two-week string of taunts he’s made about the embattled social media giant. Shortly after announcing his stake, Musk immediately began teasing possible moves, including turning Twitter’s San Francisco headquarters into a homeless shelter.

Musk has also suggested adding an edit button to tweets, hinted that Twitter could “die” and even scrapped its business model, which relies on selling ads.

Saudi billionaire Royal holds significant stakes in Uber, Lyft and Citigroup.
Saudi billionaire Royal holds significant stakes in Uber, Lyft and Citigroup.
AP

In a securities filing filed Thursday announcing his takeover bid, Musk used blunt language, telling the Twitter board, “I’m not playing the back-and-forth game.”

“I went straight to the end,” said the entrepreneur. “It’s a big price and your shareholders will love it.”

Earlier this week, Musk said he abandoned his plan to join Twitter’s board of directors as his term was near. Taking over the seat on the board would have prevented him from taking over the company.

Twitter said in a statement, “Twitter’s board of directors will carefully review the proposal to determine what course of action it believes is in the best interests of the company and all Twitter shareholders.”

https://nypost.com/2022/04/14/saudi-prince-alwaleed-bin-talal-rejects-elon-musks-twitter-takeover-bid/ Saudi Prince Alwaleed bin Talal rejects Elon Musk’s Twitter takeover bid

DUSTIN JONES

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