Twitter takeover: Democratic US senator wants probe into Saudi firm's stake

A US senior has called for a national security review into the millions of Twitter shares held by Saudi investors after Elon Musk took over the social media giant last week.

Economy

2 min read

The New Arab Staff & Agencies

31 October, 2022

Elon Musk dissolved Twitter's board of directors on Monday, cementing his control over the company [source: Getty]

Democratic US Senator Chris Murphy said on Monday he wants a US national security review of a Saudi Arabian conglomerate's stake in Twitter Inc after Elon Musk's takeover of the social media company.

Murphy said he was asking the Committee on Foreign Investment in the United States (CFIUS) — which reviews acquisitions of US businesses by foreign buyers — "to conduct an investigation into the national security implications of Saudi Arabia's purchase of Twitter."

Most foreigners seeking to take even noncontrolling stakes in US companies must seek approval from CFIUS, a powerful Treasury-led committee that reviews transactions for national security concerns and has the power to block them.

On Friday, Saudi Arabia's Kingdom Holding Company and the private office of Prince Alwaleed bin Talal said they will continue their ownership of Twitter shares valued at $1.89 billion, according to a statement tweeted by Prince Alwaleed.

Two weeks ago, Saudi Arabia sentenced a 72 year old American citizen to 16 years in jail for tweets critical of the regime he sent while in America.

This week, the Saudis partnered with Elon Musk to buy Twitter.

Do you think the Saudis bought it to promote free speech? pic.twitter.com/DAHOvG8iuE
— Chris Murphy (@ChrisMurphyCT) October 30, 2022

"The deal is in line with the long-term investment strategy which Kingdom Holding Company is known for," the statement said.

Alwaleed's Kingdom Holding is 16.9 percent owned by Saudi Arabia's sovereign wealth fund, which is chaired by Crown Prince Mohammed bin Salman.

"We should be concerned that the Saudis, who have a clear interest in repressing political speech and impacting US politics, are now the second-largest owner of a major social media platform," Murphy wrote on Twitter "There is a clear national security issue at stake and CFIUS should do a review."

The Saudi embassy in Washington did not immediately comment. Twitter did not immediately respond to a request for comment. A spokesman for US Treasury, which leads CFIUS, declined to comment.

Musk last week closed the $44 billion deal announced in April to take Twitter private. Banks including Morgan Stanley and Bank of America Corp committed to provide $13 billion in debt financing.