After buying some of Twitter's shares, Elon Musk said he would buy all of the social media shares. Prince Alwaleed bin Talal of Saudi Arabia as one of Twitter's shareholders rejected it. Why?
According to the SEC filing, the Tesla founder offered to acquire all shares in Twitter that he didn't own. He offered the acquisition for USD 54.20 per share with a total company valuation of USD 43.4 billion.
Prince Alwaleed himself has long been one of the owners of Twitter shares. In a tweet, he considered Elon Musk's offer not commensurate with the value of Twitter and its growth prospects in the future.
"I don't believe that Elon Musk's $54.20 proposal is anywhere near the intrinsic value of Twitter in terms of its growth prospects," he wrote.
"As one of Twitter's largest and long-term shareholders, the Kingdom and I declined the offer," he added.
Twitter itself is still studying the offer from Elon Musk. "The board of directors will carefully review the proposal to determine the course of action it believes is best for the company and Twitter shareholders," Twitter said.
The offer from Elon Musk made Twitter shares jump around 12% immediately. Elon Musk said the cash offer was his best and last. According to the SEC filing, if the offer is not accepted, Elon Musk said he would reconsider his position as a shareholder.
"I invested in Twitter because I believe in its potential to become a worldwide free speech platform, and I believe free speech is a social imperative for a functioning democracy," Elon Musk said in a letter he sent to Twitter.