Saudi Prince Buys Stake in Twitter

Saudi Prince Alwaleed bin Talal has bought $300 million worth of stake in Twitter, which is unofficially 3.5% of its total worth. Alwaleed bin Talal heads Riyadh based Kingdom Holding Company, which is one of the largest companies in Saudi Arabia. Prince is a nephew of Saudi king Abdullah and is one of the top business magnates in the world.

Twitter has raised a lot of money from investors including DST Global earlier this year and has claimed that it expected to raise at least $800 million from investors in 2011. After this giant investment by Saudi Prince, we can assume that Twitter has surpassed the $800 million mark.

According to some sources and other news portals, Saudi Prince is planning to expand his public holding business via social networking website. That is a pretty good tactic as in the recent years, social media has revolutionized the business sector throughout the globe. It should be noted that Twitter has played a significant role in the Arab uprisings this year as the protesters communicated mostly through ‘tweets’.

Twitter has not disclosed any details of this investment but this news can be read on the Kingdom Holding Company’s official website, which in our opinion is plainly advertising this investment.

Photo by gage and desoto
Photo by JoshSemans

Advertisements

HTC To Invest In Dr. Dre’s Beats Electronics

HTC is about to invest $300 million in Dr. Dre’s Beats Electronics, maker of the famous Beats By Dre headphone line. This deal will eventually make Dr. Dre the richest rapper in the Hip-Hop world.

Dr. Dre is already one of the wealthiest rappers and producers in the world. He is the man behind famous names like Eminem, 50 Cent, Snoop Dogg and many more. This deal will make him more richer and ultimately the wealthiest rapper alive.

HTC wants to beat its competitors Samsung and Apple Inc. in the mobile market where the company is slowly losing its influence due to some patent infringement issues.

HTC will have 51% shares in Beats Electronics and will use its technology and influence to market its products more efficiently. Beats Electronics has got a huge number of fans worldwide and seeing this, we can say that HTC’s sales will increase for sure.

Dr. Dre’s worth is nearly $125 million right now and he is one of the few artists who have registered a net worth of $100 million or more. Following this huge investment by HTC, Dre’s worth will rise rapidly and who knows, maybe he’ll cross the $200 million mark.

On the other side, HTC will also be benefited as Dr. Dre’s name is a brand in itself.

Photo Courtesy of SpreePiX – Berlin
Photo Courtesy of John.Karakatsanis

Twitter’s Worth Reaches $8.4 Billion After Funding

The micro blogging giant has become a $8.4 billion company due to a “significant” round of funding from companies worldwide. Digital Sky Technologies, a Russian firm known for its investment in various social networking sites has contributed a “generous amount” to Twitter.

Officially, no financial details were disclosed but if insider claims are taken into account, the San Francisco based social networking giant raised nearly $800 million which was rounded to $8.4 billion after the deal.

It was also said that Twitter will take 50% of this investment and the rest will be spent for buying the shares of the existing share holders.

Twitter has nearly 600 employees and seeing the success rate of this social network, we won’t be surprised if we see more investments like this in future.

After the launch of Google+, Facebook’s competition with Twitter was sort of finished. As Facebook and Google+ are fighting continuously for the crown of best social network, Twitter played a smart game by staying out of their fight.

Though Twitter is not big as both Facebook and Google, still its growth rate shows that it could beat them in a couple of years if it keeps on growing at a fast pace.

Will Twitter introduce some new features if it keeps on securing huge investments like this?

Photo Courtesy of Rosaura Ochoa
Photo Courtesy of jtyerse

Sales Up For Amazon But Profit Goes Down

Amazon announced that its sales were up nearly 50% in the second quarter thanks to its E-reader Kindle which is doing fairly well business in North America. It also said that though sales were on rise, profit figures, instead of improving, went down.

Amazon announced on Tuesday that due to its large investment in business, its profit figures were not upto to the mark. Amazon’s huge leap in sales is mostly due to Kindle, which is proving to be the best product by the company so far.

According to Amazon, its revenue increased to a bulky $9.91 million but its profit fell down to$191 million. Amazon co-founder Jeff Benzos said that,”Low prices, expanding selection, fast delivery and innovation are driving the fastest growth we’ve seen in over a decade.”

This Seattle based company earlier made money by selling and trading various items online. Recently it launched an E-reader by the name of Kindle which is available in both 3G and Wi-fi models. Its 3G based model is carried by the American telecom giant AT&T.

Amazon is currently investing heavily in China, where it has seen tremendous growth. It is rumored that Amazon’s new Kindle models will be released first in China.

Will investment in the most populous country with cheapest labour available help Amazon’s growth in the long term?

Photo Courtesy of soumit
Photo Courtesy of TAKA@P.P.R.S