New information has been uncovered about JPMorgan Chase’s social media fund, and the importance that it is putting on Twitter. The fund, known as the J.P. Morgan Digital Growth Fund, will value Twitter at $4.5 billion, and is hoping to purchase 10% of the company for $450 million.
When news about JPMorgan’s fund came to light in mid-February, it was speculated that $200 million of the total $1 billion would be invested in Twitter. Now, more details have emerged as to exactly how much of Twitter JPMorgan wants to own.
The fund itself has raised over $1.22 billion according to the Financial Times, and it plans to raise more than $1.3 billion total. This money comes from private, wealthy investors.
If the Twitter deal goes through, Twitter will represent about 35% of the entire fund.
The Financial Times also reports that the JPMorgan fund is looking to invest in other social media properties, such as Skype or Zynga. However, it look like Twitter will be the largest single investment, and act as the pillar of the fund.
The New York Times DealBook reports that the fund will either invest directly in Twitter, or buy the current investors’ stakes with the company’s consent. It will not, however, buy shares on the secondary market.
This news shows that Twitter’s valuation is skyrocketing – from $3.7 billion in December as a result of direct investments, to $4.1 billion in January on the secondary market, and now up to $4.5 billion.