Prince Alwaleed, KHC invest $300m in Twitter

20/12/2011 00:00 AST

Prince Alwaleed bin Talal, and Kingdom Holding Company (KHC), announced Monday a combined investment of $300 million in Twitter. This investment was the result of several months of negotiations and comprehensive due diligence and represent a strategic stake in Twitter, according to a KHC statement.

Prince Alwaleed commented: "Our investment in Twitter reaffirms our ability in identifying suitable opportunities to invest in promising, high-growth businesses with a global impact."

Ahmed Halawani, KHC executive director of private equity and international investments, said: "We believe that social media will fundamentally change the media industry landscape in the coming years. Twitter will capture and monetize this positive trend."

Twitter is a communication platform that instantly connects people everywhere to what's most meaningful to them. At the heart of Twitter are small bursts of information called "tweets," which are 140 characters or less in length. With 250 million tweets per day and more than 100 million active users, there is something for everyone on Twitter, no matter what you're interested in or where you are in the world. Twitter can be accessed on the Web, on smartphones and on the simplest of feature phones.

Prince Alwaleed has a strong presence and influence in media through his investments in media and entertainment in the Arab world and beyond, like the Saudi Research and Marketing Group (SRMG), in which Kingdom Holding holds a 29.9 percent stake. The publications that fall under SRMG include Asharq Al-Awsat, Al-Eqtisadiah, Arab News, Hia magazine, Al-Majalla magazine, Arrajol magazine and Sayidaty magazine. Furthermore, other entities that fall under SRMG are Al-Khaleejiah Advertising and Public Relations and Al-Madina Printing and Publishing Company. Furthermore, KHC is owner of approximately 7 percent of News Corporation's Class B common stock.

In February 2010, Rotana Group announced that News Corp. has reached an agreement to buy a 9.09 percent stake in Rotana Group, to further develop its position in the media sector in the Middle East and expand it horizon. Under the terms of the agreement, News Corporation will acquire newly issued shares in Rotana for $70 million. News Corp. has an option to increase its stake to 18.18 percent in the 18 months following completion.

In addition, Prince Alwaleed recently announced his plans to launch his privately owned Alarab news channel, the news channel will be managed by Jamal Khashoggi.

Arab News