Elon Musk criticises Saudi Arabia for restricting free speech after prince rejects Twitter’s bid.

The wealthy Saudi Prince Alwaleed bin Talal Al Saud, who is also one of Twitter’s largest owners, declared that he will vote against the $41 billion all-cash bid by Elon Musk for the firm, prompting Musk to question Saudi Arabia’s commitment to free speech.

“I don’t believe that the proposed offer by @elonmusk ($54.20) comes close to the intrinsic value of @Twitter given its growth prospects,” the prince tweeted on Thursday.

“Being one of the largest & long-term shareholders of Twitter, @Kingdom_KHC & I reject this offer.”

Elon Musk questioned Saudi Arabia’s commitment to free expression when the wealthy Saudi Prince Alwaleed bin Talal Al Saud, who is also one of Twitter’s major owners, said that he will vote against Elon Musk’s $41 billion all-cash bid for the company.

“Interesting. Just two questions, if I may,” Musk replied to the prince. “How much of Twitter does the Kingdom own, directly & indirectly? What are the Kingdom’s views on journalistic freedom of speech?”

According to Reporters Without Borders, which ranks Saudi Arabia as one of the worst countries in the world for press freedom, the country often surveils and arrests journalists. According to US intelligence, Saudi Arabia’s Crown Prince Muhammad bin Salman personally approved the assassination of Washington Post journalist Jamal Khashoggi.

Prince Alwaleed bin Talal Al Saud is the chairman of the Kingdom Holding Business, a Riyadh-based corporation that bought Twitter stock in 2011 before the company went public in 2013.

KHC also owns significant investments in companies such as the Four Seasons hotel chain, Uber, Lyft, and Citigroup.

Saudi Prince Alwaleed bin Talal Al Saud, one of Twitter’s largest shareholders, says the company should reject Elon Musk’s $41 billion all-cash bid. AFP via Getty Images

On Wall Street, Twitter shares were trading higher at the start of the day, but have since given up their gains. The stock ended the day at $45.08, down 1.7 percent.

On Thursday morning, members of Twitter’s board of directors met to examine Musk’s offer.

Despite his apparent barbs at Saudi Arabia on Thursday, Tesla CEO Elon Musk isn’t above accepting money from the country.

Musk reportedly stated in August 2018 — only months before Khashoggi’s murder — that he had “funding secured” from a Saudi sovereign wealth fund to take Tesla private for $420 per share in a deal that never materialised. A lengthy legal struggle ensued as a result of the tweet with the Securities and Exchange Commission.

Musk’s $54.20 per share Twitter offer price, which comes just days after he rejected a seat on the social media company’s board, represents a 38 percent premium to Twitter’s April 1 close, the last trading day before the Tesla CEO’s more than 9% stake in the company was made public, represents a 38 percent premium to Twitter’s April 1 close, the last trading day before the Tesla CEO’s more than 9% stake in the company was made public.

Musk, the CEO of Tesla and SpaceX, is currently the second largest shareholder of Twitter. REUTERS

“I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy,” Musk wrote in a letter to Twitter Chairman Bret Taylor.

“Since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company.”

“My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder,” Musk said.

Musk’s takeover offer for Twitter comes after a two-week barrage of jabs directed at the beleaguered social media behemoth. Musk began hinting prospective options soon after revealing his ownership, like transforming Twitter’s San Francisco headquarters into a homeless refuge.

Musk has also suggested adding an edit button to tweets, claiming that Twitter is “dying,” and even abolishing the company’s ad-based revenue model.

The billionaire Saudi royal has significant holdings in Uber, Lyft, and Citigroup. AP

Musk used tough language in a Thursday securities filing outlining his buyout offer, warning the Twitter board: “I am not playing the back-and-forth game.”

“I have moved straight to the end,” the entrepreneur said. “It’s a high price and your shareholders will love it.”

Musk announced earlier this week that he will not be joining the board of directors of Twitter, just before his term was due to begin. Taking a position on the board of directors would have prohibited him from attempting to take over the corporation.

In a statement, Twitter said: “The Twitter Board of Directors will carefully review the proposal to determine the course of action that it believes is in the best interest of the Company and all Twitter stockholders.”

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