Twitter is reportedly seeking a line of credit between $500 million and $1 billion leading up to the company's IPO, according to the New York Post. The tactic is similar to one used by Facebook during it's pre-IPO run in 2012, and the money could be used to help Twitter expand even further in the months immediately before hitting the market.
A Twitter spokesperson declined to comment on the report.
[seealso slug="breaking-news-twitter"]
JP Morgan Chase and Morgan Stanley are in talks with Twitter to provide the line of credit, according to the Post. The newspaper also reports that sources close to the situation confirmed a Twitter IPO will happen before the U.S. Thanksgiving. Twitter announced earlier this month that it filed S-1 documents with the U.S. Securities and Exchange Commission, but an official IPO date has not been set.
For Twitter, an extended line of credit could mean many things, including the possibility of more acquisitions. (The company purchased mobile-ad platform MoPub earlier this month.)
When Facebook chose to increase its line of credit prior to its spring 2012 IPO, Reuters reported that, among other things, the extra money would help pay taxes on employee stock awards vested shortly after the social network's debut on Wall Street.
What do you think Twitter will use an extended line of credit for? Tell us in the comments below.