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HomeBusinessSaudi Prince Among Twitter Investors Turned Down Elon Musk Offer

Saudi Prince Among Twitter Investors Turned Down Elon Musk Offer

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Elon Musk may have offered a high premium for Twitter, but many other big investors of Twitter are considering this offer of Musk very low. Al Waleed bin Talal Al Saud, a member of the Saudi royal family and a significant Twitter investor, said Musk’s proposal was far less than it is worth considering Twitter’s growth.

Musk Buys Twitter ( Musk Offer for Twitter ) has been offered $ 43 billion. The price Musk proposed per share was more than 30 per cent higher than Twitter’s share price at the offer. The idea of ​​how significant this amount is is known because the total debt of Sri Lanka, which is facing an economic crisis, is less than this. However, the latest statement by the Saudi prince indicates that even at this price, Musk will find it very difficult to get the necessary shares to control the company.

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What did the Saudi Prince say?

In a tweet on April 15, the Saudi prince said that I do not believe that, given the future of Twitter, the offer made by Elon Musk ($54.2) is even close to the actual price of Twitter. As a significant and long-term investors in Twitter, KHC and I decline this offer. KHC, i.e. Kingdom Holding Company, is an investment company headed by Talal. Musk offered $54.2 per share in cash for the deal.

According to a report, Musk will have to spend $ 43 billion on this price to complete this deal. Musk took a 9 per cent stake in Twitter on April 4. After which, he has presented an offer to increase the stake. He said that it would be necessary for Twitter to make changes to fulfil its purpose. At the same time, he has also said that if his offer is not accepted, then he will review his status as a shareholder.

Raising money for Elon Musk won’t be easy.

At the same time, according to a report, it will not be easy for Musk to make a cash deal of $ 43 billion, it may be one-sixth of his wealth, but the remarkable thing is that most of the billionaires’ wealth is from the stake in their companies. In Musk’s case, this increase has come from the shares of Tesla.

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Musk will have to sell a significant stake or raise debt to complete the cash deal. Both can prove to be complex bets for Musk. Bloomberg has estimated that if Musk wants to raise the rest through Tesla with the $3 billion in cash, he will have to sell a fifth of his stake in Tesla. These shares can also become the reason for the fall in prices.

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Shubham Dubey
Shubham Dubey
Shubham has an excellent knowledge of science and technology. He has one year of experience in writing articles. He also had worked for many websites. He loves singing and painting.

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