Goldman delivers Facebook financials to investors

By Reuters
Posted Jan. 6 at 2:43 p.m.

Goldman Sachs Group Inc. investors interested in investing in Facebook got financial information about the social networking company Thursday afternoon.

Copies of the 101-private placement memorandum for the Facebook offering began being hand delivered to Goldman’s wealthy customers a little after lunchtime in New York, according to a person who received a copy.

The Goldman customer said he received a separate six-page financial statement containing information on the social networking firm.

The document reveals that in the first nine months of 2010, Facebook generated $1.2 billion in revenue. Net income was $355 million.

The financial statements were not audited and offered little detail about how Facebook generates it revenue, said the source, who did not want to be identified because he had signed a non-disclosure agreement.

Goldman customers seeking to buy shares in Facebook will invest in a newly formed Delaware entity called FBDC Investors LP, according to the source. Corporate records show that FBDC Investors was incorporated in Delaware on Jan. 5.

Goldman customers have until Friday to commit to investing in the entity and untilĀ  Tuesday to wire money to the Wall Street firm.

Goldman, which is putting $450 million of its own capital in Facebook, is raising at least $1.5 billion from its wealthy customers through the limited-time offering.

Read more about the topics in this post: ,
 

Companies in this article

Comments are closed.