Facebook’s initial public offering did not get royal approval from Saudi Arabian Prince Al Waleed bin Talal, founder and chairman of Kingdom Holding, as The Telegraph reported that the prince told Arabian Business magazine he was more confident in Twitter in terms of growth.
According to The Telegraph, Prince Al Waleed bin Talal told Arabian Business:
We did monitor the company very well, but we felt uncomfortable with the pricing. (Facebook) was priced at an extremely high side at $38. When we invest in a company, we like to get good returns for our shareholders. At the price of the IPO, I can tell you that we did not see good returns.
The Telegraph added that Kingdom Holding acquired a $300 million stake in Twitter last December, or almost 4 percent of equity in the company, and Prince Al Waleed bin Talal told Arabian Business of that investment:
We entered at the right time. We will get our return on investment. We entered Twitter when it was a growth company.
The prince’s total wealth rose to $25.9 billion over the past 12 months, keeping him atop the list of richest men in the Middle East for the ninth consecutive year, according to The Telegraph, so his opinion is not one that should be taken lightly.
Readers: Do you agree with Prince Al Waleed bin Talal that Twitter is a better growth proposition than Facebook?