Goldman Sachs Group Inc. Posts

Bain Capital Buys Apex Tool Group For $1.6 Billion

Bain Capital has acquired Apex Tool Group for $1.6 billion.  Apex Tool Group is a company that makes hand and power tools.

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Facebook Reducing Credit Line By Half Due To Tax Liability Decline

Facebook is reducing their $3 billion credit line due to a decline in their tax liabilities according to a source with Bloomberg.  Facebook will be extending the term of their loan to three years from one year as well.  Facebook was able to secure a $3 billion 364-day bridge loan to help fund taxes for employees that exercised their restricted stock units.  They also set up a $5 billion five-year revolving line of credit before their IPO in May. Facebook’s tax liabilities are much lower than expected because the value of their stock dropped 45% since the IPO.  The credit financing was set up by banks like JPMorgan Chase & Co., Morgan Stanley, and Goldman Sachs Group.  [BusinessInsider]

How Goldman Sachs Screwed Up A $580 Million Acquisition

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Loren Feldman, an editor of Small Business at New York Times Digital, wrote a great article in The New York Times about how Janet and Jim Baker are fighting Goldman Sachs over a deal that went wrong in 2000. Back in 2000, the board of directors approved a sale of Dragon Systems for the price of $580 million. The investment bankers at the acquiring company Lernout & Hauspie sent a bottle to the CEO of Dragon to congratulate them, but they did not hear from their own banker Goldman Sachs.

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Palo Alto Networks Files For IPO

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Palo Alto Networks has filed a statement to go public with the SEC this morning.  They expect the price of the IPO to be at between $34-$37 per share.  Palo Alto Networks plans to sell 6.2 million shares including the 1.5 million from selling holders.

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The Story Behind Google’s $6 Billion Offer For Groupon

If Groupon accepted Google’s $6 billion offer, it would have been the largest acquisition in Internet history. The acquisition offer was made in the fall of 2010. Groupon was the fastest website to hit $1 billion in sales and was the second quickest growing website behind YouTube to hit a $1 billion valuation. The company is led by 32-year-old Andrew Mason, an inexperienced CEO with a sharp mind, which means that he could have been a billionaire by age 30. Groupon was experiencing rapid growth and Google had a really fat wallet at the time so a sale was attractive to Groupon’s leadership team and venture capital investors.
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Spotify To Be Valued At $4 Billion After Next Funding Round

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Social music service Spotify is preparing to raise hundreds of millions of dollars in a deal that would value the company at as much as about $4 billion according to sources with The New York Times. Goldman Sachs is going to participate in the round with about $100 million from their wallet. Spotify’s total round of funding would be at about $220 million.
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Ex-Goldman Programmer Sergey Aleynikov May Be Released From Prison

In July 2009 Sergey Aleynikov was accused of stealing programming algorithms from Goldman Sachs and leaking it on the Internet. Aleynikov had been in prison for the past year at the Ft. Dix federal prison in New Jersey. However the U.S. Circuit Court of Appeals in Manhattan had reversed his conviction and entered a judgment of Acquittal. Aleynikov may be heading home soon. Originally Aleynikov was sentenced to 8 years in prison.
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Glam Media Plans To IPO In Second Half Of Next Year

Glam Media is expected to have an IPO in either the third or fourth quarter of 2012. The company is currently talking to bankers such as Goldman Sachs and Morgan Stanley to lead the IPO. Glam Media is expected to top 206 million unique visitors per month across all of their properties. It is currently a comScore Top 10 U.S. Web Property. Glam is rumored to be valued at $950 million after acquiring Ning for about $200 million. [BusinessInsider]