Saudi prince buys $300m stake in Twitter

Prince Al-Waleed bin Talal has acquired a 3% chunk of Twitter through his investment vehicle Kingdom Holding Company.

by Rebecca Burn-Callander
Last Updated: 19 Aug 2013

This latest round of funding values Twitter at $10bn, up from $8bn in August this year. Not bad for a business that lost money on revenues of $45m in 2010.

The Saudi prince joins a veritable 'Who's Who' of high-profile Twitter investors, including Russian dotcom mogul Yuri Milner, Amazon billionaire Jeff Bezos and Digg founder Kevin Rose. But this deal isn't just about the kudos. Prince Al-Waleed wants to get a decent return on his stake and flex his muscle on the up-and-coming technology scene: 'Our investment in Twitter reaffirms our ability in identifying suitable opportunities,' he says. '[It's a] promising, high-growth business with a global impact.'

Prince Al-Waleed, who was dubbed the 'Arabian Warren Buffett' by Time Magazine, manages stakes in a number of technology and media interests through Kingdom Holding (KHC) including AOL, Apple, Motorola and a tidy 7% slice of News Corp.

The investment is a real coup for Twitter's management and current investors: clearly, its forthcoming (and money-spinning, hopefully) business model has impressed the Prince. While Twitter is on course to pull in between $100m and £150m in revenues this year, profit forecasts are still under wraps.

Can the microblogging site pull in enough moolah through advertising and other channels to warrant its multi-billion dollar price tag? Al-Waleed says yes: 'Twitter will capture and monetise this positive trend,' he insists.

Find this article useful?

Get more great articles like this in your inbox every lunchtime

Upcoming Events

Subscribe

Get your essential reading delivered. Subscribe to Management Today