Twitter Receives $300 Million Bounty
Twitter Receives $300 Million BountyDec 20 2011 - Business - Farhad Divecha
Popular microblogging site, Twitter, has received an investment of $300 million from an Arab Prince.
The Prince in question Alwaleed bin Talal is a majority share holder of the company Kingdom Holding through which the investment in Twitter has been made. This holding now gives the Prince a strategic stake in the network, which means that he owns more than 3% of the shares.
As a result of this investment Twitter will now have a valuation in excess of $10 Billion.
Prince Alwaleed bin Talal has recently been voted as the richest Arab businessman by the magazine ‘Arabian Business’. He is also the largest individual investor in Citigroup Inc. and also holds a stake in News Corp. He has also invested in Apple and General Motors.
This infusion of $300 million will enable Twitter to go ahead with their plans of a redesign in order to make the network faster and simpler. This should also attract more advertisers to the site.
While Twitter has confirmed the investment, they have not given any further details so far.
Twitter had also received $800 million in August from Russian billionaire Yuri Milner who has also invested in Facebook. At that time twitter had a valuation of $8 billion.
Considering the fact hat Twitter had played a significant role in the Arab Spring protests earlier this year, it may seem quite surprising that an Arab Prince has decided to invest in it. It could however be attributed to his good business acumen.