Posted by: austingraceblythe | February 28, 2011

JP Morgan to Invest in Twitter

JP Morgan’s new Digital Growth and Media fund will invest in social media networks, its first investment being Twitter. It is reported that they will invest over one billion dollars into Twitter, following the lead of other investment firms such as Goldman Sachs who recently invested over a billion dollars into Facebook.

Investments by the fund are also expected to extend to other sectors of social media,  companies like gaming giant Zynga and social coupon companies like Groupon and Living Social are also being researched as possible forms of investment. JPMorgan plans to invest in companies with established business models and steady revenue before they go public in widely anticipated stock sales.

As Twitter becomes more commercial, they introduced their first advertisements on the website las April, the companies advertisement revenue could reach $150 million from brands like Coca-Cola and Nike by the end of this year.

With the vast growth of these social networking sites, it seems an obvious idea to invest money to areas of the internet that produce the most traffic.

http://dealbook.nytimes.com/2011/02/27/jpmorgan-fund-seeks-minority-stake-in-twitter/?ref=technology

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