Saudi Prince rejects Musk's Twitter offer; Vanguard becomes largest shareholder
What's the story
Elon Musk's offer to buy 100% of Twitter for $43 billion was rejected by Saudi Arabian billionaire Prince Alwaleed bin Talal—who owns a stake in Twitter through Kingdom Holding Company. "Being one of the largest and long-term shareholders of Twitter, Kingdom Holding Company and I reject this offer," he tweeted. Meanwhile, Vanguard Group has replaced Musk as Twitter's largest shareholder with a 10.3% stake.
Context
Why does this story matter?
Twitter has 217 million daily users worldwide (estimated) and serves as a base for public figures to connect, thrive, and cast their influence. Musk—who has a 9.2% passive stake in Twitter—recently threatened Twitter to withdraw his stake if his takeover offer is rejected. Currently, Twitter has a market valuation of around $37 billion, and Musk's offer values the tech company at roughly $43 billion.
Statement
The statement of the Saudi Prince against the offer
On Thursday, rejecting Musk's offer to take over Twitter, Talal tweeted: "I don't believe that the proposed offer by @elonmusk ($54.20) comes close to the intrinsic value of @Twitter given its growth prospects." Notably, the Saudi Prince's Kingdom Holding Company had acquired a 3% stake in Twitter back in 2011. Later in 2015, Talal through his company raised his stake to 5.2%.
Quote
Musk responds to the Saudi Prince's tweet
Subsequently, Musk even replied to the Saudi Prince's tweet with two questions. "Interesting. Just two questions, if I may. How much of Twitter does the Kingdom own, directly and indirectly? What are the Kingdom's views on journalistic freedom of speech?" he asked Talal on Twitter.
Twitter Post
Take a look at Musk's response to Talal's tweet
Interesting. Just two questions, if I may.
— Elon Musk (@elonmusk) April 14, 2022
How much of Twitter does the Kingdom own, directly indirectly?
What are the Kingdom’s views on journalistic freedom of speech?
Reason
Why does Musk want to take over Twitter?
In a letter to Twitter Chairman Bret Taylor, Musk on Thursday stated he invested in Twitter, believing "in its potential to be the platform for free speech." However, he realized it will "neither thrive nor serve this societal imperative in its current form," offering to buy Twitter and unlock its "extraordinary potential." He implied he could withdraw his stake if the offer is rejected.
Changes
What all could change if Musk takes over Twitter?
Musk's recent tweets indicate he might bring a lot of changes to Twitter if he takes over the company. He had previously suggested reducing the Twitter Blue premium subscription service's prices. He might also ban advertisements on the platform. Earlier, Musk had also publicly advocated editing tools for tweets. Moreover, he might even introduce an option allowing users to pay in the cryptocurrency Dogecoin.
After Musk's offer, Vanguard Group becomes the largest shareholder
However, despite Musk's threats to withdraw, Twitter's board of directors was opposed to his takeover offer, said reports. Meanwhile, Vanguard Group has increased its stake in Twitter to 10.3%, making it the biggest shareholder in the San Francisco-based social media company, leaving Musk behind. But Musk still remains the company's largest individual shareholder, followed by the company's co-founder and former CEO Jack Dorsey.