A JPMorgan fund is in talks to acquire a substantial stake in Twitter, one of the fastest-growing social networking sites, the Financial Times reports.
The fund hopes to acquire 10 per cent of the online messaging service for $US450 million, the paper writes quoting unnamed “people familiar with the plans”, which would value Twitter at $US4.5 billion.
It was not clear if the JPMorgan fund would make a direct investment or buy out existing investors and shareholders with Twitter’s approval, the paper’s sources said. But the fund did not intend to buy shares on the secondary market.
JPMorgan’s Digital Growth Fund was established this month to give rich clients exposure to fast-growing private tech companies, and follows a similar effort by Goldman Sachs to invest in Facebook.
The fund has raised $US1.22 billon to date, according to a filing with the US Securities and Exchange Commission. But it plans to raise $US1.3 billion in total, and will have a maximum of 480 investors, the FT writes.
Besides the Twitter stake, JPMorgan hopes to invest another third of the fund in one other private web company, the FT adds – possibly games maker Zynga or telephony provider Skype.