Feeds

Facebook equity offer closed to US investors

$1.5bn deal goes 'offshore'

5 things you didn’t know about cloud backup

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. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
BBC: We're going to slip CODING into kids' TV
Pureed-carrot-in-ice cream C++ surprise
TROLL SLAYER Google grabs $1.3 MEEELLION in patent counter-suit
Chocolate Factory hits back at firm for suing customers
Twitter: La la la, we have not heard of any NUDE JLaw, Upton SELFIES
If there are any on our site it is not our fault as we are not a PUBLISHER
Facebook, Google and Instagram 'worse than drugs' says Miley Cyrus
Italian boffins agree with popette's theory that haters are the real wrecking balls
Sit tight, fanbois. Apple's '$400' wearable release slips into early 2015
Sources: time to put in plenty of clock-watching for' iWatch
Facebook to let stalkers unearth buried posts with mobe search
Prepare to HAUNT your pal's back catalogue
Ex-IBM CEO John Akers dies at 79
An era disrupted by the advent of the PC
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.