Twitter In Talks To Get 1 Billion Dollar Loan

Lisa O'Carroll of theguardian reports that Twitter is in talks with Wall Street Banks to facilitate a 1 Billion Loan She writes:

Twitter founders Biz Stone, right, and Evan Williams at their office in San Francisco. The company is expected to be valued at $10bn at IPO Photograph: Jeff Chiu

Twitter could float within two months and has reportedly entered talks with Wall Street banks about a loan facility of up to $1bn (£623m) ahead of its stock exchange debut.

The New York Post, which has reported Twitter's talks with JP Morgan Chase and Morgan Stanley, says the float is expected before the US Thanksgiving holiday on 28 November.

Twitter announced it was planning a float earlier this month but did not specify its timetable, filing S-1 documents for the initial public offering (IPO) with the Securities and Exchange Commission in the US.

It is not obliged to specify its launch date until 21 days before the IPO. 

Investors value Twitter, founded in 2006 by Jack Dorsey, Biz Stone and Evan Williams, at more than $10bn (£6.3bn).

The New York Post says that the loan facility is yet to be finalised but is in talks about a credit line of between $500m and $1bn.

The funding would give Twitter extra flexibility to bolster its position ahead of a float with possible acquisitions that would improve its financial ability. 

Recent acquisitions including MoPub, a mobile advertising network and Trendrr, which tracks "second screen" communities chatting during TV shows. 

Financing ahead of a public flotation also means Twitter would avoid having to return to the capital markets to finance international expansions following a stock market launch. 

This follows a well-worn route of other companies that have floated. Facebooktook out an $8bn financing package before it launched, while social games company Zynga raised about $1bn.