Twitter's board of directors has approved to Elon Musk's $44 billion (£34.5 billion) buyout bid.
Mr Musk, who made the surprise proposal less than two weeks ago, said that Twitter had "tremendous potential" that he would unleash.
He also demanded a slew of adjustments, ranging from loosening content restrictions to eliminating bogus accounts. The company first turned down Mr Musk's offer, but it will now put the proposal to a vote among shareholders.
According to Forbes magazine, Mr Musk is the world's richest person, with a net worth of $273.6 billion, owing mostly to his ownership of electric vehicle producer Tesla, which he also controls. He is also the CEO of SpaceX, an aerospace company.
Mr Musk said in a statement announcing the transaction, "Free speech is the backbone of a functional democracy, and Twitter is the digital town square where subjects crucial to the future of mankind are debated."
"I also want to make Twitter better than ever by adding new features, opening up the algorithms to boost trust, beating spam bots, and authenticating all people," he continued.
"Twitter has enormous potential, and I'm excited to work with the company and the Twitter community to realize it."
The decision comes as lawmakers and authorities put increasing pressure on Twitter over the information that appears on its site. Its efforts to moderate disinformation on the internet have garnered criticism from both the left and the right.