The following is an excerpt from today’s Global Newsletter.
GreenSky continues to be a thorn in David Solomon’s side.
CNBC reported today that Goldman Sachs is likely to take a “large writedown” as they seek to offload their ill-fated acquisition.
In 2021, valuations were high, and Goldman was searching for its big break into consumer lending – GreenSky seemed to be the shining golden ticket.
Eighteen months of unprecedented economic conditions later, its sheen has definitely dulled. Far from the expected success, GreenSky has failed to turn a profit, and losses have reportedly amounted to over $3 billion.
In April, Goldman announced that they were looking to sell their ill-fated acquisition, and bidders have been flocking. However, according to one, “Everybody’s been coming in low, and the Goldman team keeps pushing back, pounding the table about the value of it.”
While the image of their leadership throwing a tantrum about their own bad business decision is amusing, it’s somewhat understandable. The lender was bought for $2.24 billion, but its valuation had already slipped to around $1.7 billion by the time the deal was signed. Now, people close to the matter say it hovers between $300-$500 million.
Goldman is still in talks to try and rally bids higher, but expectations are low.
Solomon’s year of humble pie continues.
Featured
 Global |
| Goldman Sachs faces big writedown on CEO David Solomon’s ill-fated GreenSky deal www.cnbc.com The turbulence marks the latest fallout from CEO David Solomon’s decision to exit most of Goldman’s consumer efforts. |
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