Report: Twitter Wants To Raise A $1 Billion Line Of Credit
Twitter is looking to raise a line of credit at between $500 million and $1 billion before going public, according to The New York Post. Facebook did the same thing before going public in 2012. Twitter will use the funding for expansion and additional acquisitions. You may remember that Facebook spent $1 billion to buy Instagram right before going public.
JPMorgan Chase and Morgan Stanley are reportedly talking with Twitter about offering a line of credit. The Twitter IPO is expected to happen before this Thanksgiving.
Another reason why Facebook increased their line of credit before their IPO is so that the extra money would help pay taxes on employee stock awards that vested shortly after going public.