J.P. Morgan Chase‘s Digital Growth Fund is looking to purchase a small stake in Twitter that would value the service at $4.5 billion. It is not clear whether the fund will directly invest in Twitter or buy current investors’ stakes.
The New York-based fund was created to invest in social media companies with established business models and steady revenue before they go public. JP Morgan is also expected to be looking into gaming giant Zynga and group coupon provider LivingSocial.
The company’s interest in Twitter signals a rise in its worth. Two months ago the company raised $200 million, placing its value at $3.7 billion, a sharp increase from its $1 billion value in September 2009. Twitter has over 175 million users and is currently developing a moneymaking platform.
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