Feeds

Facebook equity offer closed to US investors

$1.5bn deal goes 'offshore'

High performance access to file storage

Goldman Sachs now says it will only offer Facebook equity to investors outside the US as the firm is apparently worried about scrutiny from regulators.

Goldman recently acquired a $450m stake in the still-private social-networking giant, and it began offering equity to clients willing to invest at least $2m. But as reported by The Wall Street Journal, Goldman has now decided not include US-based investors due to the "intense media attention" surrounding the deal.

In statement sent to The Journal, Goldman said that "the level of media attention might not be consistent with the proper completion of a US private placement under US law." But it also said its decision to include only "offshore" investors was not "required or requested by any other party," including the US Securities and Exchange Commission (SEC).

According to the Journal, one Goldman client was told that the US investors were excluded because of regulatory concerns.

Famously, Mark Zuckerberg and Facebook are doing their best to delay an IPO in an effort to maintain control of the company. The company says it will not go public until next year – at the earliest.

According to a report citing documents distributed by Goldman Sachs, Facebook pulled in $1.2bn in revenue over the first nine months of 2010. and net income reached $355m. Goldman values Facebook at $50bn, and it's offering as much as $1.5bn in Facebook equity.

A Journal source says that Goldman has received over $7bn in orders for Facebook shares. So even without US investors, it will likely meet that $1.5bn figure. ®

High performance access to file storage

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.