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Twitter Inc (NYSE: TWTR) will soon become a privately-owned company by billionaire entrepreneur Elon Musk, one of the social media platform's most popular users with 83 million followers.

On Monday, the Board of Directors of Twitter announced its decision to accept Musk's offer to acquire the company for approximately $44 billion. The parties already signed a definitive agreement.

Under the terms of the deal, Twitter shareholders will receive $54.20 in cash for every share of TWTR common stock. The acquisition price is 38% higher than Twitter's closing stock price on April 1, 2022, the last trading day before Musk disclosed its approximately 9% stake in the social media company.

In a statement, Twitter's Independent Board Chairman Bret Taylor said, "The proposed transaction will deliver a substantial cash premium, and we believe it is the best path forward for Twitter's stockholders."

The social media company's CEO Parag Agarwal added, "Twitter has a purpose and relevance that impacts the entire world. Deeply proud of our teams and inspired by the work that has never been more important."

On the other hand, Musk said, "Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated."

The billionaire entrepreneur added that he wants to make the social media company "better than ever." He wants to enhance its product with new features and make its "algorithms open source to increase trust, defeating the spambots, and authenticating all humans. Twitter has tremendous potential."

"I look forward to working with the company and the community of users to unlock it," said Musk.

Twitter will become private after the completion of the transaction, which is expected by the end of this year. The deal is still subject to the approval of the company's shareholders and applicable regulators.

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