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JPMorgan Twitter talks spark dotcom bubble fears
Business digest: Reported move to buy 10 per cent stake would value Twitter at $4.5bn
JPMorgan Chase is apparently in talks to buy a 10 per cent stake in Twitter that would value the five-year-old social media company at nearly $4.5bn.
The American banking firm has so far raised $1.22bn of outside investor money for its new Digital Growth Fund, which will also look at companies such as Skype and gaming giant Zynga.
Twitter was valued at $3.7bn only two months ago, a sharp rise from the $1bn valuation it was given in September 2009. This new value would mark an increase of 21.7 per cent, and has prompted concerns over the creation of a new dotcom bubble.
The social media and microblogging company has grown to employ more than 300 people over the last few years, and boasts around 253m unique users a month, 85 per cent higher than the number who visited last year.
Read a full report at the Financial Times (subscription). ·
