Kingdom Twitter stake value up 200pc
Dubai, November 10, 2013
The value of investment by Kingdom Holding Company (KHC), the investment company chaired by Saudi billionaire Prince Alwaleed bin Talal, in the microblogging site Twitter increased by 200 per cent on the first day of trading of the company's shares, a statement said.
Commenting on the move, Alwaleed said: “Twitter is the most prominent social media network in the world and our investment in the company is a strategic long-term investment.”
In 2011, Alwaleed and KHC had jointly bought an undisclosed number of stakes in Twitter for $300 million.
Alwaleed said the investment was the result of several months of negotiations and comprehensive due diligence.
"With the 300 million customers they have and half a billion tweets a day, the growth potential is tremendous," Alwaleed had said at the time of investment in Twitter.
The Saudi billionaire prince has a strong presence and influence in media through his key investments such as the Saudi Research and Marketing Group (SRMG), in which Kingdom Holding holds a 29.9 per cent stake.
The publications that fall under SRMG include Asharq Al Awsat, Al Eqtisadiah, Arab News, Hia magazine, Al Majalla magazine, Arrajol magazine and Sayidati magazine.
Furthermore, other entities that fall under SRMG are Al Khaleejiya for Publicity Advertising and Public Relations and Al Madina Printing and Publishing Company. Also, KHC is the owner of 7 per cent stake in 21st century Fox Class B Common Stock.
Rotana, which is majority owned by Alwaleed, operates one of the largest TV networks and ad sales operations in the region and owns the largest Arabic film library.
It has also built the leading record label in the Middle East, managing many of the most popular artists in the region and controlling the biggest Arabic music catalogue. Moreover, 21 Century Fox owns 19 per cent stake in Rotana.-TradeArabia News Service