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SEC To Examine Facebook, Goldman Sachs Deal

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SEC To Examine Facebook, Goldman Sachs Deal

Business

SEC To Examine Facebook, Goldman Sachs Deal

SEC To Examine Facebook, Goldman Sachs Deal

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The Securities and Exchange Commission is looking into a recent deal between Facebook and Goldman Sachs, according to The Wall Street Journal. Despite some talk of going public, Facebook is still a private company. And because it has fewer than 500 shareholders, it's not required to disclose certain financial information.

STEVE INSKEEP, host:

Regulators are curious about the social network. That's the top of NPR's business news.

(Soundbite of music)

INSKEEP: The Securities and Exchange Commission is looking at a recent deal between Facebook and Goldman Sachs. That's according to today's Wall Street Journal. Despite some talk of going public, Facebook is still a private company. And because it has fewer than 500 shareholders, it is not required to disclose certain financial information.

But in the deal reported earlier this week, Goldman Sachs is investing hundreds of millions of dollars in Facebook. The investment bank also plans to create a separate investment vehicle that will allow its top clients to buy stakes in Facebook.

Regulators are looking at whether this circumvents financial disclosure rules.

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