Demand is Strong for Facebook, Goldman (GS) Stops Soliciting
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According to sources, Goldman Sachs (NYSE: GS) is saying the response is so strong to buy into Facebook, that they have stopped soliciting potential investors.
The Wall Street Journal, citing people familiar with the matter, said that wealthy clients have been scrambling to grab a piece of the equity offering, which could be worth as much as $1.5 billion.
Goldman, along with Digital Sky Technologies of Russia, has already sunk $500 million in Facebook.
One Goldman employee said, succinctly, "It's a blowout."
Some key terms may have kept some on the sideline: a $2 million minimum requirement, the commitment to keep the money locked up for several years, and not selling shares until 2013 to get in on the deal. Goldman has given slightly better deals to their partners.
WSJ notes that the frenzy to get in on the deal is "striking," based on the lack of information, terms mentioned above, and hefty fees amounting to 4% upfront and 5% on any gains.
The Wall Street Journal, citing people familiar with the matter, said that wealthy clients have been scrambling to grab a piece of the equity offering, which could be worth as much as $1.5 billion.
Goldman, along with Digital Sky Technologies of Russia, has already sunk $500 million in Facebook.
One Goldman employee said, succinctly, "It's a blowout."
Some key terms may have kept some on the sideline: a $2 million minimum requirement, the commitment to keep the money locked up for several years, and not selling shares until 2013 to get in on the deal. Goldman has given slightly better deals to their partners.
WSJ notes that the frenzy to get in on the deal is "striking," based on the lack of information, terms mentioned above, and hefty fees amounting to 4% upfront and 5% on any gains.
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