J.P. Morgan Acquires 10% of Twitter Through Stock Purchases From Existing Shareholders

There is a lot of speculation about how J.P. Morgan and angel investor Chris Sacca acquired about 10% of equity in Twitter for $450 million. The most interesting part here is how the funding round was conducted. It was not done as a venture capital series of funding.

The rumor is that J.P. Morgan committed most of the capital for the ownership in a $1 billion fund through angel investor Chris Sacca. And over the last several months, they have acquired $400 million in Twitter stock from existing shareholders at a price range of $16-$21/share.

This fund is now the second largest shareholder in Twitter according to sources. Sacca supposedly acquired $100 million worth of stock from Twitter co-founder Evan Williams. Union Square Ventures, Spark Capital, and other shareholders sold off another $300 million worth of Twitter stock. This means that J.P. Morgan’s fund still has about $700 million to spend on other popular web and mobile companies, which they’ll most likely plug in to companies as large as Groupon and Zynga.


This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at
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