A day after “The Social Network” dominates the Golden Globes, Goldman Sachs pulls the red carpet right out from under U.S. investors by announcing that only non-U.S. investors will be permitted to participate in the $1.5B private offering for Facebook. According to The Wall Street Journal (that “other” journal), Goldman blames the intense media attention for its decision, citing that it could potentially “put the deal in danger of violating U.S. securities guidelines for private placements”. I doubt Goldman will have any difficulty placing the shares. Sources close to the deal state it is already oversubscribed to the tune of $7B. Perhaps Goldman can concoct some kind of a solution to appease its U.S shareholder base like setting up a foreign-based special-purpose-fund for the purpose of investing in its U.S. based special-purpose-fund which exists for the purpose of investing in Facebook – thereby collecting even more fees. Or maybe, just maybe, Goldman can garner assistance from Zynga to help sell its U.S. clients virtual shares of its special-purpose-Facebook-fund. Although, if I had to guess, I would predict that Goldman does nothing except to let its U.S. client base stew. If Goldman’s stewing clients are reading this, I would remind them that, in life, when a window closes a door usually opens. This just might be the ideal time to walk through that door, make a left off Wall Street and head right toward Second Street.
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- Goldman changes course with Facebook in U.S. (seattletimes.nwsource.com)
