This week, reports surfaced that Goldman Sachs reached out to its wealthiest clients, asking if they would be interested in investing in FaceBook. Today, more news about the deal was released as potential investors were given documents about the company's finances by the bank.
According to Reuters, Goldman started hand-delivering copies of a 101-page private placement memorandum today to its clients who have indicated their interest in investing in the social network. Goldman has already committed $450 million in financing to FaceBook, and the new document is an insight into FaceBook's well guarded financial statements.
The document tells, among other disclosures, that in the first nine months of 2010, FaceBook earned $355 million in net income on revenue of $1.2 billion. However, the financial statements were not audited and therefore, do not tell exactly how FaceBook generates revenue.
The bank's wealthy customers have until tomorrow to commit to investing in the darling of the technology world, and until next Tuesday to wire money to the bank. Along with its initial capital investment, Goldman hopes to raise $1.5 billion from its clients in a financing round. Goldman has valued FaceBook at $50 billion.