Goldman Sachs To Sell Consumer Lending Business GreenSky: Report
Portfolio Pulse from Shivani Kumaresan
Goldman Sachs is reportedly in advanced talks to sell its specialty lender, GreenSky, to a consortium of investment firms including Sixth Street, Pacific Investment Management, and KKR & Co Inc. The deal is expected to be worth $500 million, significantly less than the $1.7 billion Goldman paid for the business a year and a half ago. This comes after Goldman's consumer-lending business, including GreenSky, lost about $4 billion since 2020.
September 20, 2023 | 12:25 pm
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Goldman Sachs is planning to sell GreenSky, a specialty lender it acquired for $1.7 billion, for a significantly lower price of $500 million. This comes after the bank's consumer-lending business, including GreenSky, reported losses of about $4 billion since 2020.
The news of Goldman Sachs selling GreenSky for a significantly lower price than it paid for it, coupled with the reported losses in its consumer-lending business, could negatively impact investor confidence and potentially drive the stock price down in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
KKR & Co Inc is part of a consortium in advanced talks to acquire GreenSky from Goldman Sachs. The deal is expected to be worth $500 million.
The potential acquisition of GreenSky could be seen as a positive move for KKR & Co Inc, as it could expand their portfolio and potentially increase their revenue in the long term. This could potentially drive the stock price up in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60