UPDATED 14:39 EST / JANUARY 17 2011

Goldman Gets $7 Billion in Facebook Share Orders, Blocks U.S Investors

According to CNN, Goldman Sachs announced it will be offering Facebook shares via company exclusive, with private placement deal to non-U.S residents only.  This internal decision is reportedly due to excess media coverage – the SEC has a history of halting and postponing issuances because of such issues.

“For the Facebook deal, Goldman had repeatedly told prospective investors not to disclose any details about the private offering, but obviously some leaked information and even shared copies of the offering memoranda with the financial news media.”

Investors displayed a great deal of interest in Goldman’s $1.5 billion private fundraising round earlier this month, and the same is true for this round. $7 billion in orders for Facebook stock came from U.S and international investors, notably from Chinese investors. One of China’s largest social networks, Renren, plans an IPO in the U.S, which means that American investors still have a prospect to invest in some of the larger players in one of the fastest growing industries in the world.

In our previous mentions of Facebook’s financial outlook, we have an ownership infographic describing who owns how much of the social-networking giant – Facebook employees lead the pack with ~30%.  Additionally, we also discussed how Facebook’s high valuation makes the conditions ripe for an IPO.


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