Goldman Sachs and Facebook

The social networking site, Facebook, has established itself as an Internet phenomenon, garnering considerable public attention thanks to the millions of people who use the site each day. Despite the apprehension of investors who might fear another dot.com bust, Facebook has also garnered considerable interest from investors, including Goldman Sachs. A search on Facebook reveals that Goldman Sachs has its own profile on the social networking site, where it is identified as an investment banking and securities company with operations worldwide. The connection between Goldman Sachs and Facebook however runs much deeper.
Although Goldman Sachs primarily assists institutional clients in asset and investment management, the company also participates in private and proprietary trading and equity deals, which is where Facebook comes in. Goldman Sachs invested almost $500 million in Facebook and is expected to make a significant profit for itself and for Facebook when the Internet Company rolls out its first public offering in 2010. In addition to the profit generated by the sale of shares in Facebook and the banking fees associates with it, Goldman Sachs also expects to win the role of managing the millions of dollars this public offering is expected to generate for Facebook creator Mark Zuckerburg and the Company’s other executive officers.