Fox Business Network’s Charlie Gasparino reports that “Goldman Sachs (GS) is killing this [Facebook] deal” as the Security and Exchange Commission (SEC) is “ramping up the scrutiny of this deal and other deals like it.” Gasparino said the SEC is investigating whether “Facebook breached the 500 rule not just now, but possibly in the past” and Goldman Sachs is reporting the move to end the deal was “their decision.”
Here are the key highlights from the report, courtesy of Fox Business Network:
On the SEC investigation into Goldman Sachs’ proposed investment in Facebook:
“The SEC did not like this deal from the beginning. I predicted they would let it go but they didn’t. Why didn’t they let it go? Goldman Sachs is killing this deal as the SEC is ramping up the scrutiny of this deal and other deals like it. The SEC is investigating if Facebook breached the 500 rule not just now but possibly in the past. The 500 rule says you have to have 500 investors. If you have more than 500, you have got to go public or do these public filings as if you are public. People at the SEC believe Facebook in other deals like this, as it attracted other investors, they may have put itself in play in the past.
Goldman Sachs did pull this deal they are saying it’s their decision. They are kind of blaming it on the media. My sources are telling me just the opposite; this is the SEC saying they don’t like this deal and Goldman finally reading the tea leaves.”