“I reject this offer”: Elon Musk, Saudi Prince spar over Twitter takeover effort
Saudi Arabia–A day after Tesla Chief Elon Musk offered to buy social media company Twitter Inc, Saudi Arabia’s Prince Alwaleed bin Talal tweeted to rebuff the billionaire entrepreneur’s offer.
On Thursday, the Saudi prince tweeted from his verified account that Musk’s $43 billion all-cash offer to buy Twitter does not come close to the “intrinsic value of Twitter given its growth prospects”, thereby rejecting the bid on behalf of his Saudi-based Kingdom Holding Company. As per reports, Alaweed owns a 4.45% stake in Twitter while his company owns 0.72% of the social media platform.
“Being one of the largest & long-term shareholders of Twitter, @Kingdom_KHC & I reject this offer,” the prince posted on Twitter.
In a share reply to the prince’s tweet, Musk asked two questions:
1. How much of Twitter does the Kingdom own, directly and indirectly?
2. What are the Kingdom’s views on journalistic freedom of speech?
The tech billionaire, who owns 9.2 percent of Twitter, had previously expressed his willingness to take the social media company private and grow it into a platform for free speech.
“I am offering to buy 100 percent of Twitter for USD 54.20 per share in cash, a 54 per cent premium over the day before I began investing in Twitter, and a 38 per cent premium over the day before my investment was publicly announced. My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder,” he had written.
Musk’s $54.20 per share offer price was disclosed in a regulatory filing on Thursday. Furthermore, Twitter stated that it would be carefully reviewing the proposal to determine the course of action in the best interest of the company and all stockholders.
Last week, Musk rejected an offer to join the Twitter board, bolstering the company’s stock price on the market. According to Dow Jones Market Data Group, Twitter’s market value hit $40 billion when Musk disclosed his 9.2 percent stake in the company earlier this month. With this development, he became the largest shareholder of the social media company.