New York – Goldman Sachs has been "inundated" with
demand for its special allocation of shares in social network Facebook, and
plans to stop seeking investors for the oversubscribed fund, The Wall Street
Journal reported. The investment bank had planned to raise $1.5 billion through
the offering to its elite client base of top global investors, with the minimum
investment set at $2 million.

Goldman Sachs led a $500 million investment in
Facebook last week that valued the company at $50 billion, in a deal that
included the share offering.

The Journal reports that the SEC has launched an
inquiry to determine whether the unique offering skirts federal rules that
mandate companies with more than 500 shareholders to file financial reports
with the SEC.

Another interesting development from the offering comes from the
financial details about Facebook that Goldman is providing to prospective

Reuters reports the details show that Facebook generated $1.2
billion in revenue and net income of $355 million during the first nine months
of 2010, and net income of $200 million in 2009 with revenues of $777 million.



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