NEW YORK (CNNMoney) — Saudi Prince Alwaleed
bin Talal said Monday that he and his investment
firm, Kingdom Holding Company, are purchasing a
$300 million stake in Twitter.
The
Saudi prince is the latest power player to bet
that fast-growing Twitter will transform
itself into a profitable business.
The billionaire prince said the investment
was made after “several months of negotiations”
and would represent “a strategic stake” in the
microblogging service.
We believe that social media will
fundamentally change the media industry
landscape in the coming years. Twitter will
capture and monetize this positive trend,” KHC
executive director of private equity and
international investments Ahmed Halawani said in
a press release.
The prince’s Twitter shares were bought on
the secondary market, according to Fortune
reporter Dan Primack — which means that Twitter
didn’t directly recieve any of the cash.
While it’s unclear how much control
Alwaleed’s investment will provide, the prince’s
investment firm looks to become long-term
investors in its portfolio investments and
“seeks to work closely with the management of
those companies and participate in strategic
decisions,” according to its site.
With a reported net worth of $21.3 billion,
Prince Alwaleed has topped Arabian Business’s
Arab Rich list for eight consecutive years. source – CNN Money