Technology

Saudi Prince Invests $300 Million in Twitter Stake

Since the IT sector is currently thriving, a frenzy of all sort of deals have been announced over the few months. Most recent news involves a Saudi Prince and an investment of $300 million in Twitter stake.

Twitter has been trying to get back in the spotlight for some time now, as Facebook keeps scoring raving success from users worldwide. The latest idea to boost up sales and brand visibility involved complete redesign of its micro-blogging service.

According to the company, the enhancements would make Twitter a more “compelling destination” for brands. At the same time, Twitter is losing two of its co-founders, as both Evan Williams and Biz Stone have become less involved under Chief Executive Officer Dick Costolo.

As stated by EMarketer Inc., Twitter may boost ad revenue by 86 percent next year as it attracts more international advertisers. Same company had cut its estimate for 2011 ad revenue to $139.5 million from $150 million in September because Twitter had recorded a slow pace with some services.

Well, to some extent it looks like Twitter has turned into a more appealing destination for investors’ money, as Saudi billionaire Prince Alwaleed bin Talal has bought a stake in Twitter for $300 million.

Reuters points out that Alwaleed decision is quite interesting, since Twitter “was a key means of communication for protesters in the Arab Spring revolts this year, violence that threatened Saudi Arabia until the kingdom unveiled a populist $130 billion social spending package”.

Bernhard Warner, co-founder of Social Media Influence, believes the Arab World “knows full well the value of Twitter”. Alwaleed “must see Twitter as something that is going to be a really powerful broadcast channel”, he adds.

A similar point of view has Samer Darwiche, analyst at Gulfmena Investments in Dubai: “Kingdom realizes the importance of social networks like Twitter and their future growth prospects, and decided to benefit from this trend”.

Jack Nelee, fund manager at Robeco Groep NV, said that Alwaleed’s investment may value Twitter at $10 billion. “Twitter is seen as a strategic asset within the social media space, given its large user base. But the business model in its current form isn’t ready for the public market”, he explained.

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Ronald Silva is one of our newest publishers.He currently lives in Toronto (Canada) with his family.Ronald covers the music and sports sections of DailyGossip.org. Over the past few years, Ronald has participated in various journalistic projects including some of which he started when he worked for a local newspaper in Toronto. Contact him at Ronald.Silva@dailygossip.org.

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