Who owns Twitter?
According to Quartz magazine:
“A Saudi prince has increased his holdings in Twitter, making him the company’s second largest shareholder.
Prince Alwaleed Bin Talal Bin Abdulaziz Alsaud, who in 2011 invested $300 million in the social network, now owns 34.9 million shares of Twitter’s common stock, according to a new regulatory filing (pdf)
At nearly 5.2%, his stake in the company is now larger than that of Jack Dorsey, Twitter’s co-founder and newly re-minted CEO, whose 21.86 million shares give him 3.2% of the company, according to FactSet. (The prince previously had a stake of roughly 3%.)”
What does it mean to have 5.2% of votes in a company as big as Twitter? It certainly is not a majority but it is not a just 5% of vote. If, let say the Prince decided to shock the price of Twitter on the market, he could by off loading the whole lot or even a half in one day. That could, potentially send shock waves that would tumble the share price down significantly. Naturally, other shareholders do not want that to happen. In order to prevent that from happening, most of the shareholders should listen to what the Prince want intently, if you catch my drift.
Alwaleed, who serves as majority owner and chairman of the Kingdom Holding Company, is also a significant investor in News Corp, Citigroup, and the Four Seasons Hotels and Resorts.