J.P. Morgan In Talks With Twitter For Possible Minority Stake

February 28th, 2011 at 11:51 am
 


It seems that the investors are once again eyeing tech companies as attractive investments. A number of investment companies have recently had talks with a number of tech companies for a possible stake in exchange for funds. One of the recent ones to be reported is one that J.P. Morgan may be having with popular micro-blogging site Twitter.

J.P. Morgan may be the latest investment firm to be having talks with a popular tech company for a possible investment stake. The firm chose Twitter as one tech company that may provide them with such an opportunity. J.P. Morgan has recently established its Digital Growth Fund which totals around $1.2 billion for investing in tech. But reports say that the talks may still be in its preliminary stages. There might be chances that the possible minority stake that J.P. Morgan might be eyeing in Twitter may not even push through.

Twitter is a wildly popular micro-blogging site that allows users to send out messages limited to just 140 characters per message. This for of online communication has become quite popular that has led the tech company to gain more traction in terms of value. A recent round of funding that garnered for Twitter around $200 million in December just gave the company a $3.7 billion valuation. If the talks with J.P. Morgan for a minority stake on Twitter push through, that valuation may just go up to around $4.5 billion.

So far, the terms behind the possible minority stake remains unknown. It may still be far from being a sure thing, considering that Twitter might also be quite careful with what it wants to bring into its fold. But what this might indicate is that interest in the tech companies for investments are once again becoming quite attractive, despite the lack of a clear cut means of how such tech companies may actually be generating revenue to justify their recently growing valuation.

 

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