March 03, 2011

Twitter Co-founder Keeps Matters Private


Rumors that Twitter might be gobbled up by a competitor are being met with stone-cold denial: Biz Stone, to be precise. The Twitter, Inc., co-founder said his company wants to remain independent, according to a recent Associated Press report.

The article quoted Stone as saying: "I believe there is a lot of room for another Internet giant to succeed. So our goal with Twitter is, has been, and will continue to be to remain an independent company no matter what rumors are swirling."

The comments were made at a conference in Seoul, South Korea in response to questions about media speculation that Google or Facebook may be aiming to purchase the wildly popular social networking site.

"There's always another rumor that somebody's trying to acquire us," Stone added. "But our goal is to have a positive impact on the world, build a wonderful business on top of that and have a blast doing it. That's always been our goal. That's what we want to do."

Recently, TechZone360.com cited a Reuters report that JPMorgan Chase & Co., has developed a new technology fund that is currently in talks to buy a substantial stake in Internet messaging. As a result, it has its sights set on Twitter.

JPMorgan’s Digital Growth fund is hoping to acquire as much as 10 percent of Twitter for $450 million, as reported by TechZone360. The company is valued at $4.5 billion.

In a regulatory filing on Friday, JPMorgan said that it had raised $1.22 billion for the Digital Growth fund. Reportedly, the fund eventually plans to raise a total of $1.3 billion from a maximum of 480 investors.

A third of the fund is likely to be invested in another private Internet company such as online gaming company Zynga or telephony company Skype. The final third is expected to be invested in six other companies, which could include coupon site LivingSocial or online retailer Gilt.

According to the Financial Times, JPMorgan anticipates more than $13 million in commissions from the fund. This latest fund by JPMorgan comes on the heels of the $1.5 billion fund-raising round by Facebook, mainly from Goldman Sachs and its clients.




Edited by Tammy Wolf



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