Am I the only one who thinks Goldman has pulled a fast one here? They have found a way to ride the new "irrational exuberance" going on with tech companies.
There is a ton of cash out there that people need to deploy and they realized that facebook is a sexy way place that will attract a ton of cash, so they set up a SPV that allows them to take a huge cut of the investment without really putting that much of their own skin in the game.
The valuation of facebook at $50 billion is over 25x its $2m revenue, while Google is valued at around $200 billion which is less than 9x its $22m revenue. Facebook shares are highly illiquid which means that they should be valued at a discount relative to more liquid stocks with the same business model and growth prospects.
By the time these shares IPO with a pop Goldman will have already pocketed its "service fee" and possibly a IPO fee as well. Then its investors will be left holding the bag as the investors watch their valuation come back down to earth.
Did the world not just do this same thing less than ten years ago in the exact same industry? How has everyone forgotten so fast?
"History does not repeat itself, but sometimes it rhymes" - Mark Twain
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