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Goldman Sachs (GS) will only allow non-U.S. investors to take a stake in Facebook, saying it...

Goldman Sachs (GS) will only allow non-U.S. investors to take a stake in Facebook, saying it "concluded the level of media attention might not be consistent with the proper completion of a U.S. private placement under U.S. law." Whoops.
Comments (28)
  • Tom Au, CFA
    , contributor
    Comments (6775) | Send Message
     
    The "ultimate" irony. Facebook is primarily a U.S. phenomenon, but only non-US investors can invest in it.
    17 Jan 2011, 12:11 PM Reply Like
  • Silentz
    , contributor
    Comments (708) | Send Message
     
    And it makes you wonder how many of the "non-US investors" are friends of GS...
    17 Jan 2011, 12:52 PM Reply Like
  • Silentz
    , contributor
    Comments (708) | Send Message
     
    How is that legal?
    17 Jan 2011, 12:50 PM Reply Like
  • fmt
    , contributor
    Comments (2) | Send Message
     
    Yes it is legal and in fact the only way to avoid the 'public solicitation' soup GS has ended up in. SEC laws exempts foreign (non US citizens) solicitations from registration requirements.

     

    Because of arcane SEC laws it is actually a loss for US investors as they are deprived of this investment opportunity (valuation of the deal aside - just a general point)
    17 Jan 2011, 02:07 PM Reply Like
  • bearfund
    , contributor
    Comments (1534) | Send Message
     
    Yeah... I was going to say, I don't think anyone being left out of this is being "deprived" of anything other than perhaps the chance to lose a lot of money. The only hope of a profit here is to sell into an IPO frenzy. Remember, $1.5b is only 3% of the company, so anyone who takes this stake is going to have plenty of competition to supply that market. It had better be a BIG frenzy. Zuckerberg and his buddies have to be laughing like mad and wondering what else they can get away with.
    17 Jan 2011, 10:04 PM Reply Like
  • Credible Clarity
    , contributor
    Comments (160) | Send Message
     
    What does Mark Zuckerberg say about this? I doubt he wanted American investors kept out. Thanks Goldman, NOT!
    How will this play in Davos?
    17 Jan 2011, 12:51 PM Reply Like
  • Ken Solonika
    , contributor
    Comments (165) | Send Message
     
    The WSJ piece states that FB is directing those with questions to contact GS.
    17 Jan 2011, 01:07 PM Reply Like
  • AnchorMan
    , contributor
    Comments (115) | Send Message
     
    Seriously? zuckerberg, GS dont care who invests in it, they just want to make money, why would you think otherwise?
    17 Jan 2011, 01:56 PM Reply Like
  • enigmaman
    , contributor
    Comments (2686) | Send Message
     
    What does Mark Zuckerberg say about this?

     

    How much am I going to net on this deal
    17 Jan 2011, 06:29 PM Reply Like
  • Ken Solonika
    , contributor
    Comments (165) | Send Message
     
    From the article: "Chinese demand is very strong."
    17 Jan 2011, 12:59 PM Reply Like
  • deercreekvols
    , contributor
    Comments (5137) | Send Message
     
    Time Magazine's Man of the Year may have enjoyed the cash flow from Goldman Sachs, but I wonder if anyone at facebook agreed to a move like this? At what point do we GS be prosecuted for the missing five billion dollars that their books never accounted for? It is only a matter of time before moves like this catch up with GS.
    17 Jan 2011, 01:26 PM Reply Like
  • Ken Hasner
    , contributor
    Comments (427) | Send Message
     
    It's all accounted for...just check the social registry in the Hamptons of Long Island or the French Riviera...you'll find most of it sunk into massive estates that are only occupied 2 months out of the year.
    17 Jan 2011, 02:36 PM Reply Like
  • deercreekvols
    , contributor
    Comments (5137) | Send Message
     
    Excellent point. With former Goldman Sachs executives holding positions of power within the Federal Government, I doubt that we will ever get the truth. Probably the French Riviera, as to not pay the outrageous NY State property taxes each year!
    17 Jan 2011, 03:44 PM Reply Like
  • eggfaced
    , contributor
    Comments (293) | Send Message
     
    Facebook valued at 50 billion is absurd so let foreigners buy shares of another bubble. Just like GS packaged all those mortgages together and sold them overseas.
    17 Jan 2011, 01:30 PM Reply Like
  • Rhianni32
    , contributor
    Comments (1995) | Send Message
     
    My thoughts exactly. Let them buy it up. I bet GS already has the exit strategy.
    17 Jan 2011, 03:45 PM Reply Like
  • mikeybronx
    , contributor
    Comments (347) | Send Message
     
    no way facebook brings in $5 billion a year to warrant a $50 billion valuation. not in the near future, hello?.
    17 Jan 2011, 04:44 PM Reply Like
  • anrold
    , contributor
    Comments (8) | Send Message
     
    I guess the us dollar has really lost it's value with the big boys.
    17 Jan 2011, 01:37 PM Reply Like
  • mike mohr
    , contributor
    Comments (451) | Send Message
     
    Let others buy into this pump and dump. We do not need it. To be honest Americans don't have any money to invest in another ponzi.
    17 Jan 2011, 02:13 PM Reply Like
  • Cincinnatus
    , contributor
    Comments (3336) | Send Message
     
    Yes, that's what I need. Frank/Dodd and the government telling me what a ponzi scheme is. They don't run any of course.
    17 Jan 2011, 03:20 PM Reply Like
  • Neil459
    , contributor
    Comments (2644) | Send Message
     
    Need it or not, its a great example where the socialist "fairness" maxim and propensity to regulate reduces freedom of Americans. If they cannot chose to participate then they are not free.
    17 Jan 2011, 02:37 PM Reply Like
  • Jasper M
    , contributor
    Comments (1652) | Send Message
     
    This is only fair: The Chinese sell us their reverse merger frauds, we sell them Facebook. Seems to me we may very well be getting the better end of that deal – Facebook has every sign f being the first pump and dump visible from orbit.
    17 Jan 2011, 02:57 PM Reply Like
  • Ken Hasner
    , contributor
    Comments (427) | Send Message
     
    I think NASA is intending to use Facebook to get astronauts to the space station after the final shuttle is scuttled. The only problem is the trip back down to earth can be quite fast...
    17 Jan 2011, 03:03 PM Reply Like
  • Robespierre
    , contributor
    Comments (218) | Send Message
     
    "level of media attention might not be consistent with the proper completion of a U.S. private placement under U.S. law."

     

    What does that mean? That if there wasn't a light shinning on this they would do it regardless of U.S. law? Some one explain plz...
    17 Jan 2011, 02:59 PM Reply Like
  • deercreekvols
    , contributor
    Comments (5137) | Send Message
     
    Isn't what Goldman is doing considered discrimination to its US clients by leaving them out of the facebook sale? Bring on the lawsuits.
    17 Jan 2011, 03:48 PM Reply Like
  • Ken Hasner
    , contributor
    Comments (427) | Send Message
     
    Don't be so naive, the US clients of Goldman will ALL be participating. They are all big fish who have international connections and will not be left out. The ones left out are the individual retail investors...who would not be participating for the most part in any private placement anyway.

     

    A story that is a non story...slow news day I guess.
    17 Jan 2011, 03:54 PM Reply Like
  • pgone1
    , contributor
    Comments (3) | Send Message
     
    They have to know the private placement rules; this was not a mistake, this could have been part of their strategy to win the Groupon IPO business. They want to show Groupon they have the best digital company IPO of all time.....either that or they aren't as bright as the folks on CNBC reminds every frkn day....
    17 Jan 2011, 06:54 PM Reply Like
  • coddy0
    , contributor
    Comments (1182) | Send Message
     
    Goldman Sachs (GS) will only allow non-U.S. investors to take a stake in Facebook
    ==================

     

    Summarizing everything posted on this thread:

     

    Goldman treats unfairly US based investors by leaving them out of the biggest pump and dump scheme designed to victimize China based investors even as special Goldman clients

     

    Sounds like mice talking in front of mousetrap
    17 Jan 2011, 09:54 PM Reply Like
  • kknucklehead
    , contributor
    Comments (111) | Send Message
     
    once again I'll mention...you cannot have a research desk and an investment arm...it is beyond comprehension that they could co-exist ...

     

    but don't worry...they are really cracking down on this sort of thing..oh well...maybe not...instead let us give them money ........

     

    Seriously...

     

    Kknuck
    17 Jan 2011, 11:24 PM Reply Like
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