Elon Musk to Buy Twitter

Twitter’s board has unanimously agreed to accept Elon Musk’s purchase offer of around $44 billion, the company said Monday.

The deal is expected to close later this year. It has led employees to question the billionaire’s plans for the influential social media network, including possible layoffs.

The Dow reversed its nearly 500-point intraday loss on Monday as news broke that Twitter’s board had accepted Musk’s offer to buy the company and take it private.

Twitter stock was up by about 5.5% on Monday afternoon before trading halted for the news. Musk agreed to pay $54.20 per share in cash.

Other tech stocks, such as Microsoft, Alphabet and Amazon, were up after the deal as US markets recovered from a steep drop last week, moving from deep red territory back toward stable levels.

What does this mean for me? 

Musk’s buyout of Twitter has led to frenzied speculation about his plans for the social network. Although it will be a private company with a profit motive, the sale is generating concerned responses from commentators worried about whether free speech will be protected.

Some analysts say this could be a high-profile example of shareholder activism, a phenomenon where investors push companies to address environmental or social issues or to embark on different types of change.

For the stock investor, Twitter is an interesting asset to watch. Musk promises to unlock the company’s potential even further, opening questions about whether his leadership can increase the profitability of such an established name.