Goldman Sachs is rumoured to have bought a
$450m stake in Facebook, to give its high net worth clients access
to stakes in the highly-lucrative social networking site.
Facebook is not a public company, which makes
the deal even more attractive for the bank’s private wealth clients
because they would otherwise not be able to buy stakes.
Private wealth management clients will be able
to invest about $1.5bn into Facebook.
Although Goldman Sachs told PBI it
could not “comment nor provide any guidance on this topic”, private
wealth clients are rumoured to be offered to invest up to $2m
Goldman Sach’s cash will pump up Facebook’s
value to about $50bn, making it a stronger competitor among rapidly
growing online businesses such as Twitter and Google.