Sunday, February 13, 2011

JPMorgan starts new Social Media Fund

JPMorgan starts new Social Media Fund
In an attempt to seize upon investor excitement over social media and networking companies like Facebook and Twitter, JPMorgan Chase is now planning on starting a new fund to invest in these social media companies.

The proposed fund that will be run by JPMorgan is looking at being raised from $500 million to $750 million and which will be poured into companies like Twitter and Groupon. The idea behind all of this is to support companies with highly established business models and steady incomes before they plan on going public with their stock sales.

Many of the most popular social media companies like LinkedIn and Pandora have already started to go public with their stocks. These filings come before the much-anticipated stock sales from Groupon and Facebook. Interest in these companies has been on the rise recently. JPMorgan plans on buying and selling shares in these companies for their clients and do not intend to directly invest in the firm’s own money.

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