Millions in funds for the social network

Report says that a new social media fund has been formed and J.P. Morgan is raising its capital. The news was confirmed by the people who are in direct contact with him or close to him. The purpose of this new fund is to focus on the social media companies like Twitter and Facebook. The fund is expected to be from $500million to $1 billion as reported by many news organizations.

The news has not been officially confirmed, it was reported by the Wall Street Journal and the New York Post. The fund is being made to focus on those private companies in the field of new media, general internet space and social media which are lacking behind and have steady profits. Forbes has tried to contact various people who are close to J.P. Morgan and who are managing his assets, but no one has responded. The Journal has reported that the bank will be raising the amount of fund from $500 million to $750 million. The New York Post has reported the amount to be $1 billion. The New York Post also reported that an amount of $200 million will be invested by J.P. Morgan in Twitter. The rest of the money will be used and distributed at the different websites.

With the vision of looking ahead in the future J.P. Morgan is gaining advantage, which the highly tech companies are not looking at. Pandora and LinkedIn have decided to go public in raising their capital while Facebook and Groupon are raising the funds privately. A private investment in the social networking site Facebook was made by a firm which is headed by Lloyd Blankfein. The investment amounted to be $450 million which made the total investment in the company to be $50 billion.

One can see a change in the trading of the stocks of the private companies and this has drawn the attention of the Securities and Exchange Commission. The Commission has warned Second Market and Share Post, place where trading takes place. These two trading platforms are being watched closely. As per the rules set by Securities and Exchange Commission the private companies require minimum 500 investors to disclose its financial reports.

J.P. Morgan is not investing its own money in the social media fund that is being talked about. The reason of not investing in the fund is that there are dangers of the rules and regulations. The private companies specially have been exploding valuations in the tech world. The source of income through the internet by private companies is catching up. After Apple secured its second position in the largest corporation market in the world and Google dominated the online advertising, the online business is catching up.

JP Morgan Starting ‘Social Media Fund’ To Invest In Twitter, Facebook, And Other Private Companies