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J.P. Morgan After Tenth Of Twitter

An investment fund led by J.P. Morgan is in talks to acquire a sizable stake in Twitter, the Financial Times reported on Sunday. According to sources, the fund is seeking a 10% share for $450 million, which would value the top microblogging platform at $4.5 billion. Similar to a fund recently set up by Goldman Sachs to invest in Facebook, JPMorgan's Digital Growth Fund was established this month to give wealthy clients access to popular private tech companies.

Citing a filing with the Securities and Exchange Commission, FT.com reports that the fund has raised $1.22 billion to date, while sources say the fund could grow to $1.3 billion. Along with Twitter, JPMorgan reportedly plans to invest in additional private web companies, which could include Zynga, Skype, LivingSocial and Gilt.

On Sunday, it wasn't clear to FT.com whether the JPMorgan fund would make a direct investment or buy out existing investors and shareholders with Twitter's approval. According to later reports, the latter case seems the most likely.

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