Ask yourself not how much money you are going to make on this deal but when are they going to DUMP. It might be sooner than you think
not so sure about that, If you have some long term investors locked up, they can lend their shares for the interest on a short sell. Everyone outside GS loop can do what they want and GS and customers will make money, on the long or short side. Slick deal if you ask me.
Goldman is as usual, pretty smart. The investors, not so much: "If you're one of those investors, here's the deal in a nutshell: You get to buy shares, forking over 5 percent of any possible gains, on top of a 4 percent placement fee and a 0.5 percent expense reserve fee (so you're down 10 percent before the game starts) in a private company that doesn't have to disclose any pertinent financial information to you or any regulator for 15 months. For the privilege, Goldman gets its eight-digit windfall. The rich Goldman clients who must pony up a minimum $2 million investment aren't allowed out until 2013. To avoid another uncomfortable SEC incident, and the nuisance of public scrutiny, they've put the sell possibility right out front: a disclaimer allowing them to dump their shares, or perhaps short them, at any point. Which is extra convenient, since Goldman is privy to far more information about Facebook than the people they would sell them to: insider trading in the public marketsâupfront and legal here." http://www.thedailybeast.com/blogs-...worse-than-toxic-mortgages/?cid=hp:mainpromo2
The lockup is absurd. There will be a huge OTC vol-market in facebook, if there isn't already. You won't be able to collar/short through GS, but I am sure that JPM, MS, BAC, DB or SG will be happy to oblige.
Of course not. There will be plenty of innovation from outside google. But this is an area that is not only very old and well-known, but concerns google's primary focus, targeted advertising.
No pump for Americans: Goldman Sachs will limit its private placement of shares of social networking site Facebook to investors outside the United States, citing "intense media coverage," the investment bank said. http://www.reuters.com/article/idUS...ters/businessNews+(News+/+US+/+Business+News)
Stage one of pump completed, financing oversubscribed: Facebook is preparing to open its books this year or early in 2012 to give investors a glimpse into the financial workings of the world's No. 1 social network, after it sealed an oversubscribed $1.5 billion round of financing led by Goldman Sachs. The financing, $1 billion of which is from Goldman Sachs' overseas clients and $500 million from Goldman itself and Russian investment firm Digital Sky Technologies, gives the company a projected value of $50 billion, setting the stage for what could be one of the largest initial public offerings next year. http://www.reuters.com/article/idUS...ters/businessNews+(News+/+US+/+Business+News)