JP Morgan Chase is reportedly looking to acquire a 10% stake in the social network Twitter for US$450m, according to media reports. Citing sources that were familiar with the process, the Financial Times reported yesterday that JP Morgan’s Digital…
JP Morgan Chase is reportedly looking to acquire a 10% stake in the social network Twitter for US$450m, according to media reports.
Citing sources that were familiar with the process, the Financial Times reported yesterday that JP Morgan’s Digital Growth Fund was looking to buy the 10% stake.
According to the FT report, it remains unclear whether JP Morgan will buy the stake directly or will purchase it from investors in the social network.
The sources reportedly said that JP Morgan was not planning to acquire the shares on the secondary market.
A document from the Digital Growth Fund filed with the SEC on 23 February shows that the fund has currently raised US$1.22bn.
If the reports are true, the move would suggest a value of US$4.5bn for Twitter.
It would also show the growing appetite from investment banks to invest in social networks.
It follows reports in early January that Goldman Sachs had invested US$450m in the social networking giant Facebook, which suggested a value of US$50bn.
JP Morgan declined to comment.
