GSKY Stock Recent News

Goldman Sachs (NYSE:GS) faces a significant writedown on its investment in GreenSky as it seeks buyers for the fintech lender, CNBC reported on Friday.  Its shares fell 1.5% to $314.88 shortly after the market opened.

Synchrony Financial SYF, -1.07%, KKR & Co. KKR, -2.54%, Apollo Global Management APO, -1.28%, Sixth Street Partners and Warburg Pincus have bid on the installment loan business of Goldman Sachs Group Inc.'s GS, -1.25% GreenSky consumer lending business, but the bids are coming up below what Goldman wants, CNBC reported, citing people familiar with the process. Goldman Sachs may end up getting far less for the GreenSky businesses than it paid when it acquired the company for $1.7 billion in stock when the deal closed in 2021, the report said.

Goldman Sachs is likely to take a large writedown for its $2.2 billion acquisition of fintech lender GreenSky after seeking to divest the business it bought in 2021, CNBC reported on Friday, citing people with knowledge of the sale process.

The turbulence marks the latest fallout from CEO David Solomon's decision to exit most of Goldman's consumer efforts.

Goldman Sachs is exploring strategic alternatives for its consumer arm and FinTech unit GreenSky as it scales down its retail ambitions. Among the firms that submitted initial bids for the installment lending platform, which Goldman Sachs acquired for $2.24 billion last March, are Apollo Global, Sixth Street, and Warburg Pincus.

Goldman bought GreenSky for about $2.24 billion in late 2021.

Goldman Sachs Group Inc. disclosed losses for its platform solutions unit which houses some of its consumer-focused banking businesses for credit cards and lending, amid a build-up of loan loss reserves at the unit.