Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Sorry, Americans: Goldman kicks U.S. clients out of Facebook deal

By Laurie Segall, staff reporter


NEW YORK (CNNMoney) -- Goldman Sachs' American clients looking to buy Facebook shares through the company's exclusive and highly publicized private placement deal are out of luck.

The financial services giant said Monday that it will only be offering shares to its non-U.S. clients, a decision it attributed to the "intense media attention" the deal has attracted since it came to light earlier this month.

"Goldman Sachs concluded that the level of media attention might not be consistent with the proper completion of a U.S. private placement under U.S. law," the company said in a written statement. "We regret the consequences of this decision, but Goldman Sachs believes this is the most prudent path to take."

Goldman said its decision "was not required or requested by any other party." But keeping its Facebook coup out of the U.S. market could help Goldman steer clear of tricky questions from the U.S. Securities and Exchange Commission, which is probing the fast-growing "secondary" market for shares of privately held companies.

Goldman dumped kerosene on that market earlier this month by inviting some of its richest clients to participate in a $1.5 billion private fundraising round that values Facebook at $50 billion. Goldman ended its solicitation early because of overwhelming interest from its clients.

Facebook has been on a growth tear this year, topping 500 million users. It recently passed Google as the most visited site on the Web, according to a recent Hitwise studyTo top of page

Search for Jobs

Index Last Change % Change
Dow 20,596.72 -59.86 -0.29%
Nasdaq 5,828.74 11.05 0.19%
S&P 500 2,343.98 -1.98 -0.08%
Treasuries 2.40 -0.02 -0.74%
Data as of 1:49pm ET
Company Price Change % Change
Bank of America Corp... 23.12 0.05 0.22%
Micron Technology In... 28.43 1.96 7.40%
Advanced Micro Devic... 13.70 -0.09 -0.65%
Ford Motor Co 11.62 -0.05 -0.43%
Chesapeake Energy Co... 5.22 0.13 2.55%
Data as of Mar 24
Sponsors

Sections

Four countries included in the U.S. electronics ban list -- the United Arab Emirates, Qatar, Kuwait and Morocco -- are absent from the U.K. restrictions. More

The GOP effort to repeal Obamacare is on ice for now. What happens to your health care coverage? More

In a company-wide email on Friday, Hampton Creek CEO Josh Tetrick wrote that both the SEC and the Department of Justice have closed their inquires into the company's so-called mayo-buyback scheme. More