Twitter: soon to be valued at more than 4 billion dollars?

A new investment fund being put together by investment bank J.P Morgan is interested in purchasing part of Twitter. Such an acquisition would increase the social networks value to more than 4 billion dollars.

Web companies, in particular those that have social network activities, are seeing increased investment activities before an eventual Stock Market listing in the future. The social network Twitter is a company that is regularly raised as a potential acquisition target, although this is often downplayed by the company themselves.

In the meantime, some investment companies are injecting funds in the hopes that they will see spectacular gains. In addition to the company’s themselves it is their capacity to collect user’s personal information, with the aim of exploiting this in the future, being at the heart of their strategies.

The new funds are being raised by investment bank J.P. Morgan who is looking to take a minority share in Twitter, according to information published in the Wall Street Journal, although an agreement is yet to be finalised.


A high value, but revenue of only a few hundred million dollars
The fund has managed to raise 1.2 billion dollars, well above their initial aim of 500 to 750 million dollars, which will allow them to greatly assist in the development of today’s leading companies. Discussions are underway with Twitter which has increased the social networks value to more than 4 billion dollars at the same time that the company has very little revenue of its own.

J.P Morgan’s strategic fund is also in negotiation with Zynga, a games editor which distributes their product over social networks, with the company also interested in a stock market listing in the short or medium term. The company is looking to raise 500 million dollars.

Despite the pressure of certain players (Facebook, Google…), Twitter’s managers seem to be adverse to the idea of a takeover, instead preferring to continue to develop their activity and try to turn their content into revenue streams through the 200 million social network subscribers.