Goldman Sachs likely to take big writedown on GreenSky acquisition: Report

Goldman Sachs (Photo: Reuters)

Goldman Sachs is likely to write a significant writedown on its $2.2 billion acquisition of fintech lender GreenSky after it seeks to liquidate the business it bought in 2021, CNBC reported on Friday, citing people familiar with the sale.

The report added that offers to buy Greensky, which facilitates home improvement loans to consumers, came in well short of Goldman’s expectations.

Goldman shares fell 1.4 percent in morning trading. The company did not immediately respond to a Reuters request for comment on the report.

The bank was managing a sale of GreenSky and may write off $500 million of the goodwill, or the premium it paid above the book value of the assets, Goldman President and COO John Waldron told investors at a conference in June. .

Apollo Global Management, Sixth Street and Warburg Pincus were among the initial bidders for GreenSky, according to media reports.

(Reporting by Manya Saini in Bengaluru; Editing by Chingini Ganguly)

First published: June 23, 2023 | 9:12 p.m ist