In a snub to American investors -- granted, extremely wealthy ones -- Goldman Sachs is making its exclusive private offering of Facebook even more exclusive. Due to reported headaches, the investment giant is making shares of the social media hot shot available only to investors in Europe.
The Wall Street Journal reports that "the intense media spotlight left the deal in danger of violating U.S. securities laws."
Writes the Journal:
"Over $7 billion in orders have poured in from foreign investors, or more than $4 for every $1 in shares being sold, according to people familiar with the situation. While high-profile U.S. investors would have been another seal of approval for Facebook, a person close to the company said it is comfortable with a heavier-than-expected concentration of non-U.S. investors."
Forget the fact that this is American company, run by Americans and started in the dorm rooms of a leading American college and was the basis for a story for a blockbuster American film. The fact is clear: Americans are not allowed to invest in Facebook.
If I were a Goldman's client -- I'd have to be worth $25 million in order to play -- I would not be pleased. Make yourself heard, America.