A J.P. Morgan Chase & Co. fund is in negotiations with Twitter to take a minority stake in the microblogging service, according to a report in The Wall Street Journal. The investment would come from the bank's new $1.2 billion digital growth fund and would value Twitter at $4 billion. This is in addition to already purchased shares, which came on exchanges for private-company stock.
The main challenge for Twitter is converting its active userbase of 200 million registered accounts into a money-making machine. Moving towards that goal, Twitter introduced advertising into its service last year and is expected to rake in $150 million in revenue this year. Some of that will go towards its 350 employees.
In addition to Twitter, J.P. Morgan might also be interested in Zynga, the online gaming company responsible for Farmville, Mafia Wars, and lots of other popular titles.