At an event in Seoul, Twitter co-founder Biz Stone dismissed rumors that his micro-blogging site would file for an initial public offering in the near future, Reuters reports. “We have so many other things before we even think about that,” he said. “We are not even discussing it internally. It’s too far off.”
And that other rumor that Twitter was selling JPMorgan a 10 percent share of the company? The story was "made up," Stone said. He's referring to last week's Financial Times story about a deal valuing Twiter at $4.5 billion. The Times said JPMorgan would either directly invest $450 million in Twitter or buy out existing investors "with Twitter's approval."
The denial, though, isn't satisfying Fortune senior editor Dan Primack, who tweets, "The top Reuters story on Twitter's 'funding' totally misses the nuance. Twitter didn't sell shares. Its VCs did. Not funding, but liquidity."
If that has you scratching your head, remember that Primack (along with TechCrunch editor Michael Arrington) is convinced that JPMorgan already has a big chunk of Twitter. In a blog post last week, Primack described how the deal went down according to his sources:
Chris Sacca, an early Twitter investor and advisor, recently raised around $1 billion for a Twitter-specific secondary fund. Much of that fund's commitments came from JPM – most likely via its $1.2 billion Digital Growth Fund (which didn't hold a first close until February 8). Sacca then bought up around $400 million worth of shares, from Twitter co-founder Ev Williams, certain company employees and existing shareholders Spark Capital and Union Square Ventures.
The purchases were done at various valuations, the highest of which was $4.5 billion.
This article is from the archive of our partner The Wire.
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