Twitter says it's being bought by Elon Musk for $44 billion, and that's what the deal is worth.
On Monday, Twitter (TWTR) said that it had agreed to be bought by Tesla CEO Elon Musk for $44 billion in cash. As soon as the deal is done, Twitter will become a private company. Twitter shareholders will get $54.20 per share.
Twitter trading was shut down on Monday afternoon because of the news. After 3:30 p.m. EST, shares were up 6%.
Announcement: It comes after a rough few weeks between Musk and Twitter's board. Musk became the company's biggest shareholder, turned down the board's efforts to invite him to join, and tried to take over the social media company in a hostile takeover bid.
Musk now has Twitter in addition to Tesla (TSLA), SpaceX, The Boring Company, and Neuralink, which he already owns and runs. A lot of people follow Tesla CEO Elon Musk on Twitter because he shares a lot of information about his businesses and his own thoughts. However, he also uses the platform to fight with politicians and people who don't like him.
His Twitter use has also led to him getting into trouble with the law in the past, most infamously when he tweeted that he wanted to take Tesla private at $420 a share. He was fined $20 million by the Securities and Exchange Commission for that tweet.
Monday was a big day for Tesla CEO Elon Musk. On Twitter, he said the SEC, especially its San Francisco office, is "a puppet of Wall Street shortseller sharks."
Musk, a friend of Twitter co-founder and former CEO Jack Dorsey, has a lot to say about Twitter and its content-moderation rules. So far, it's not clear how exactly Musk will change the social platform, though.
Allowing users to post more freely could lead to a lot of content that both current users and the company's advertisers don't want to see.
Advertisers could leave Twitter if there aren't rules in place to keep their ads from being next to hate speech or misinformation, which is a problem even when content moderation is in place. And because the company mostly makes money from ads, that could bring down the whole social network.
There's no way to know for sure that Musk will make any big changes to the platform. As long as he took over Twitter and changed a few things, he could keep most of it. It's still a lot of work for him to build out Tesla's infrastructure and release its cybertruck, though.
Musk will have to tell us more. By tweet, of course.