Twitter is set to pay $1 billion to restructure and close social networks to better protect the privacy and safety of its users, according to a filing with the U.S. Securities and Exchange Commission.
The company is seeking approval to restructuring and to close social network sites including Twitter, which account for nearly 30 percent of Twitter’s user base, as well as Twitter and Facebook, the filing said.
Twitter is currently valued at $76 billion.
Twitter will pay $5.4 billion to close the social networks and will pay another $1.4 million to restitute its stake in Instagram.
The payment would also allow Twitter to restock the company’s capital and fund the sale of its Twitter stake to private equity firm Sequoia Capital, according the filing.
Twitter and Instagram have been under pressure to sell the companies to private investors, which would make them easier to buy.
Twitter has said it is exploring options for selling its stake.