Goldman Sachs has decided to bar private U.S. clients from getting a piece of an oversubscribed $1.5 billion investment in Facebook because of "intense media attention," the securities firm tells the Wall Street Journal Monday.
In a very brief article the Journal says Goldman has "concluded the level of media attention might not be consistent with the proper completion of a U.S. private placement under U.S. law."
Notably absent in the statement is any hint that any legalities are involved. In fact it says the decision was not "required or requested by any other party," including the Securities and Exchange Commission.
The SEC isn't exactly on the sidelines, however. The Journal reported on Jan. 5that the agency had begun an inquiry into whether the deal was designed to avoid rules aimed at protecting investors, citing “people familiar with the situation.”
It's unclear if such a probe would be neutered if, for example, there were no U.S. investors.
Goldman can afford to be very picky. It closed the fund only days after announcing the private investment placement, which values Facebook at $50 billion. Because it is oversubscribed, and Goldman can decide who gets a piece of the action, it evidently leaves no money on the table by making the already exclusive investment available only to its non-U.S. clients.
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See Also:
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- Goldman's $50 Billion Facebook Valuation Is No Bargain
- Snubbed by Google, Goldman Sachs Manages to Friend Facebook ...
- Goldman-Facebook Deal Draws SEC Scrutiny of Startup Investing ...
- Goldman Infusion Values Facebook at $50 Billion, Virtually Assures ...
- Facebook Faces IPO or SEC Disclosure in 2012
