Why Twitter Stock Skyrocketed Today

Shares of Twitter (NYSE: TWTR) soared today after Elon Musk finally agreed to buy the social media company for $44 billion, the original price he offered several months ago. The Tesla CEO's decision appears to conclude several months of legal wrangling as Musk had sought to get out of the deal by claiming, among other things, that bots were inflating Twitter's user base.

The stock popped shortly after noon when Bloomberg broke news of the deal. Twitter finished the day up 22.2% at $52 a share, 4% below the originally negotiated buyout price of $54.20.

Seemingly to avoid an upcoming deposition and a court battle, Musk sent a letter to Twitter Monday night saying he intended to close the transaction as the two parties had initially agreed to back in April.

Source Fool.com