+ - Goldman Sachs invests $450 million in Facebook
Submitted
by
nicoleadams45
nicoleadams45 writes "Goldman Sachs kicked off the new year with a $450 million stake in Facebook. Goldman Sachs was joined by a Russian company which invested an additional fifty million dollars, which boosted Facebook's implied industry value to $50 billion. Goldman's expenditure makes it a front runner to manage a Facebook IPO that most analysts consider imminent. People are taking out payday loans to be ready to jump on this bandwagon if it goes through. Source of article — Goldman Sachs Facebook deal sets bank up to manage possible IPO by MoneyBlogNewz.
Goldman Sachs with a Facebook package within the works The social network phenomenon will benefit a lot from Goldman Sachs expenditure. More sector value than eBay, Yahoo and Time Warner could be put into it. About $50 million was added to the stake in Facebook from Digital Sky Technologies which is a Russian expenditure firm. In 2009 DST paid $200 million for a 2 percent stake in Facebook, and by buying shares from Facebook employees is reported to have increased its stake to about 10 percent. Facebook has continued as a private company that obviously doesn’t have to borrow cash. The business does not disclose finances though. This year, Facebook reported owning a ton of money. About $2 billion was reported. Instead of Google, the social networking site was the most visited site within the United States This was just this past year though.
Goldman doing what it has to before Volker rule With the Dodd-Frank financial reform bill, it seems like more individuals know the plan Goldman Sachs wants to take with the Facebook expenditure. The investment that Wall Street banks can make with their own money is limited with the “Volker rule” within the financial reform bill Financial reform legislation gives the banks several years to comply with the new regulations. The Goldman Sachs Facebook package indicates the firm is taking advantage of that grace period to make lucrative private equity deals with its $900 billion balance sheet. Also, Goldman is trying to get wealthy clients to invest in Facebook. This would get up to $1.5 billion in.
Carefully view of IPO for Facebook by Goldman Facebook is currently being investigated by the Securities and Exchange Commission for private trading of the company's shares on the secondary industry. The worth of Facebook went up a ton last year while the business tried to stop employees from selling the shares at a high price. SEC rules limit private businesses to 499 shareholders. The finances have to be public while shares are registered if Facebook gets to 500 shareholders. Facebook is probably not too happy to have the Goldman Sachs Facebook deal, go through. Then, an IPO would have to occur with Facebook. As a shareholder in Facebook, Goldman is now positioned to underwrite a Facebook Initial Public Offering, which would generate huge fees for the bank and a financial windfall for its clients.
Articles cited
New York Times
dealbook.nytimes.com/2011/01/03/why-facebook-is-such-an-important-friend-for-goldman-sachs/
Financial Times
ft.com/cms/s/0/e0dad322-173c-11e0-badd-00144feabdc0.html#axzz19zsuu6Oz
PC World
pcworld.com/businesscenter/article/215349/reports_facebook_raises_500_million_faces_sec_inquiry.html"
Goldman Sachs with a Facebook package within the works The social network phenomenon will benefit a lot from Goldman Sachs expenditure. More sector value than eBay, Yahoo and Time Warner could be put into it. About $50 million was added to the stake in Facebook from Digital Sky Technologies which is a Russian expenditure firm. In 2009 DST paid $200 million for a 2 percent stake in Facebook, and by buying shares from Facebook employees is reported to have increased its stake to about 10 percent. Facebook has continued as a private company that obviously doesn’t have to borrow cash. The business does not disclose finances though. This year, Facebook reported owning a ton of money. About $2 billion was reported. Instead of Google, the social networking site was the most visited site within the United States This was just this past year though.
Goldman doing what it has to before Volker rule With the Dodd-Frank financial reform bill, it seems like more individuals know the plan Goldman Sachs wants to take with the Facebook expenditure. The investment that Wall Street banks can make with their own money is limited with the “Volker rule” within the financial reform bill Financial reform legislation gives the banks several years to comply with the new regulations. The Goldman Sachs Facebook package indicates the firm is taking advantage of that grace period to make lucrative private equity deals with its $900 billion balance sheet. Also, Goldman is trying to get wealthy clients to invest in Facebook. This would get up to $1.5 billion in.
Carefully view of IPO for Facebook by Goldman Facebook is currently being investigated by the Securities and Exchange Commission for private trading of the company's shares on the secondary industry. The worth of Facebook went up a ton last year while the business tried to stop employees from selling the shares at a high price. SEC rules limit private businesses to 499 shareholders. The finances have to be public while shares are registered if Facebook gets to 500 shareholders. Facebook is probably not too happy to have the Goldman Sachs Facebook deal, go through. Then, an IPO would have to occur with Facebook. As a shareholder in Facebook, Goldman is now positioned to underwrite a Facebook Initial Public Offering, which would generate huge fees for the bank and a financial windfall for its clients.
Articles cited
New York Times
dealbook.nytimes.com/2011/01/03/why-facebook-is-such-an-important-friend-for-goldman-sachs/
Financial Times
ft.com/cms/s/0/e0dad322-173c-11e0-badd-00144feabdc0.html#axzz19zsuu6Oz
PC World
pcworld.com/businesscenter/article/215349/reports_facebook_raises_500_million_faces_sec_inquiry.html"
