Is Twitter Really Worth $10 Billion? The Saudi Prince Thinks So
The valuation for tech companies is one of those things that polarize people. Some people are befuddled by the inflated valuations attached to some companies, while others feel that values set aren’t high enough. This very fluid valuation practice exists largely at the top of the scale, where big companies like Facebook sometimes have very outrageous valuations placed on them, especially when they are trying to raise funds.
Well known Saudi investor, Prince Alwaleed bin Talal is set to make a $300 million investment in Twitter through his investment company called Alwaleed’s Kingdom Holding Co. Bin Talal is apparently taking the initiative to shore up Twitter’s platform in wake of Facebook’s recent bid to raise $10 billion from investors. Bin Talal isn’t exactly sure that Twitter’s has, or can justify a $10 billion price tag, but that hasn’t stopped him from stepping up to the plate with his offer.
To put Bin Talal’s investment into perspective, Twitter raised a total of $400 million from various investors in the early part of 2011. Now one single investor is coming and in a plunking down all of $300 million. Simply amazing.
With such a big chunk of funds coming in, perhaps Twitter can now really start making a push towards making the platform more capable of taking on the likes of Facebook.
Do you think the Saudi Prince is off his rockers for throwing $300 million at Twitter? Share your thoughts below.
(Source: sitetrail.com)
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