For the second year running “Facebook” was the number one search term on the web. In 2010, a movie “The Social Network” was released, documenting the origins and rise to international domination (save for parts of Asia) of Facebook, as the social network of choice. Late Sunday night the New York Times’ DealB%k , broke a story about Goldman Sachs offering their clients the chance to invest in Facebook, in a deal that values the company at $50 Billion.
According to the DealB%k article… “the email sent to Goldman clients warns recipients who trade in secondary markets where private firms like Facebook trade may want to steer clear of participating because if they opt-in they may receive material non-public information on the unnamed company that will restrict future trading.”
Essentially, private investment in a non-public company gives the investor access to company information, and secondary market information that would exclude the investor from trading in the company are they to go public. Whilst Goldman decline to comment, DealB%k reference a source stating that investors “would be prohibited from selling their shares until 2013”. (more…)
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