Remember back in 2011 when Goldman Sachs made a deal with Facebook to sell $1.5 billion of Facebook stock to rich Goldman clients overseas at a $50 billion valuation?Remember how the Facebook stock then took off like a rocket in private markets, and everyone started shouting about how good Goldman was and how lucky its clients were?
Those clients might not feel so lucky today.
According to Facebook’s prospectus, those Goldman clients bought Facebook stock at a price of $20.85 per share.
After hitting the public markets at $38 per share, Facebook stock is around $23 and going south.
Meanwhile, Goldman’s clients remain unable to sell their stock, as they are held through a “Goldman entity,” and are therefore must wait until a 91-day lock-up period following the IPO expires.