Democratic Party Senator Questions Shares of Saudi Arabian Conglomerate on Twitter

US Democratic Senator Chris Murphy (photo: Twitter @ChrisMurphyCT)

JAKARTA - US Democratic Senator Chris Murphy said on Monday October 31 that he wanted a US national security review of the Saudi conglomerate's stake in Twitter Inc following Elon Musk's takeover of the social media company last week.

Murphy said he asked 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.

Today I am requesting the Committee on Foreign Investment — which reviews acquisitions of U.S. businesses by foreign buyers — to conduct an investigation into the national security implications of Saudi Arabia's purchase of Twitter.https://t.co/IDwnKGaxt7

— Chris Murphy (@ChrisMurphyCT) October 31, 2022

Most foreigners wishing to take non-controlling shares in US companies must seek approval from CFIUS, while a powerful Treasury-led committee reviews transactions for national security issues and has the power to block them.

On Friday, October 28, the Royal Saudi Arabian Holding Company and the private office of Prince Alwaleed bin Talal said they would continue their $1.89 billion Twitter stake. This was revealed according to a statement tweeted by Prince Alwaleed.

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

Alwaleed's Kingdom Holding is 16.9% 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 suppressing political speech and influencing US politics, are now the second largest owner of a major social media platform," Murphy wrote on Twitter. "There are clear national security issues at stake and CFIUS should conduct a review."

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

Musk last week closed a $44 billion acquisition deal announced in April to make Twitter a private company. Several banks including Morgan Stanley and Bank of America Corp. are committed to providing $13 billion in debt financing.