Why Prince Al Waleed ‘Gave’ Elon Musk $44 Billion to Buy Twitter

When Elon Musk announced his intention to acquire Twitter for $44 billion, many analysts and investors believed the platform was overvalued. However, Saudi Prince Al Waleed bin Talal, a long-time investor in Twitter, saw things differently. His decision to retain his stake in Twitter rather than cashing out at Musk’s offer price has since proven to be a strategic move, aligning with his vision for the future of social media.

The Initial Resistance

At the time of Musk’s offer, Twitter’s valuation stood at $44 billion, with many critics arguing that it was already overpriced. Prince Al Waleed initially opposed the deal—not because he didn’t want Musk to take over, but because he believed Twitter was worth more than the $54.20 per share Musk was offering.

“I didn’t want to sell my shares. I believed Twitter had a higher value,” Al Waleed stated. Despite the general market consensus, he saw Twitter as an essential global platform with untapped potential.

A Strategic Partnership with Musk

Rather than selling his shares, Al Waleed reached out to Musk directly. He recalled making the call from the desert, asking Musk whether he intended to take full ownership of Twitter or if he was open to partners. Musk welcomed the Prince’s involvement, allowing him to keep his stake in the company. “Prince, guaranteed—you’ll keep everything,” Musk assured him. Following that discussion, Al Waleed publicly supported Musk’s bid.

His reasoning was clear: Twitter, now rebranded as X, was poised to become more than just a social media platform. Al Waleed recognized its potential as an all-encompassing digital hub, often referred to by Musk as the “everything app.”

Mass Layoffs: A Controversial Yet Necessary Move

One of Musk’s most controversial decisions after taking over Twitter was laying off approximately 80% of the staff. Many critics called the move inhumane, but Al Waleed saw the economic rationale behind it.

“The media focused on the job losses, but no one talked about the billions of dollars saved,” he explained. Musk’s decision ultimately saved Twitter over $2.5 billion in operating costs, helping the company navigate a difficult transition period as advertisers pulled back their spending.

Twitter’s Transformation into X

Al Waleed’s long-term vision for Twitter aligns closely with Musk’s ambition to transform the platform into a multifaceted service. Under Musk’s leadership, X is integrating new features such as payment systems and enhanced video capabilities. Al Waleed sees these developments as part of a broader evolution that will make X the leading platform for global discourse and digital commerce.

“Twitter is now the interactive forum for world leaders, influencers, and millions of users,” he stated. With 255 million daily active users and an ecosystem exceeding a billion people, X is set to redefine how media and communication function on a global scale.

Advertising Struggles and the Path Forward

Musk faced significant challenges with advertisers, as many major brands—including Disney—pulled their ads from X. Some organizations even reportedly conspired to “kill Twitter.” However, according to Al Waleed, the tide has turned. “Now, about 90% of advertisers have returned,” he noted, crediting Linda Yaccarino, the CEO of X, for spearheading the recovery efforts.

Al Waleed’s Role in Musk’s Expanding Network

Despite their differences in background, Al Waleed and Musk have developed a close relationship. The Prince has also maintained strong connections with other industry leaders, including Disney’s Bob Iger, Fox’s Rupert Murdoch, and Bill Gates. While some of these figures have clashed with Musk, Al Waleed remains a neutral, independent player. “They talk to me, even if they don’t talk to each other,” he said.

The Future of X

Looking ahead, Al Waleed envisions X as the ultimate all-in-one app, providing services beyond social media. With payment processing and additional interactive features on the horizon, X is set to become a dominant force in digital communication.

“Slowly but surely, we are heading in the right direction,” Al Waleed affirmed. By retaining his stake in Twitter and aligning with Musk, he has positioned himself as a key figure in the platform’s future—one that could redefine the media landscape for years to come.