Saudi Prince Buys $300 Million Stake in Twitter
Twitter is here to stay and the value of micro-blogging site can only increase– at least that’s what Saudi Arabian Prince Alwaleed bin Talal is betting on. Ranked the richest Arab in the world with a reported net worth of $21.3 billion, Prince Alwaleed was already a media mogul with stakes in Time-Warner and News Corporation as well as plans to launch his own Alarabi news channel in 2012.
Through a press release the banker and financier announced that his Kingdom Holding Company (KHC) is investing $300 million in Twitter for an estimated 3% stake in the company (unlisted Twitter is valued and just over $8 billion by analysts). “Our investment in Twitter reaffirms our ability in identifying suitable opportunities to invest in promising, high-growth businesses with a global impact,” says Prince Alwaleed in the release.
In light of the success of Facebook it’s become clear and both Wall Street and Silicon Valley view social media as the next frontier to be conquered–in fact a question likely to come up for any tech start-up is “what’s the social component of your product or service?”
African-Americans are highly engaged on Twitter, according to the Pew Research Center 13% of online adults user use Twitter and of that number 25% of the users were black and non-Hispanic compared to just 9% for whites in May 2011. If one of the world’s richest men is recognizing the opportunities in a social media platform that indexes so highly in young black users then we can expect that businesses, small and large, to do the same.