J.P. Morgan Pours Millions Into Twitter

By Sajid Farooq
|  Thursday, May 5, 2011  |  Updated 5:32 AM PDT
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Twitter may still be honing out its business model and some may question its revenue plans but that isn't stopping J.P. Morgan Chase from investing millions in the company.

The investment firm is reportedly negotiating to purchase a minority stake in the San Francisco-based microblogging site.

The money would come out of J.P. Morgan Chase's $1.2 billion digital growth fund and push Twitter's valuation to north of $4 billion.

The irony is J.P. Morgan Chase said the fund was going to be invested in companies with "established business models and steady revenue before they go public." Both of which Twitter does not currently have.

So why would J.P. Morgan Chase be interested?

It's most likely betting on the future and that close to 200 million users will eventually translate into solid growth and profit.

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