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.
Bids for Greensky, which facilitates home improvement loans to consumers, are coming in well below Goldman’s expectations, the report added.
Shares of Goldman fell 1.4% in morning trading. The company did not immediately respond to a Reuters request for a comment on the report.
The bank has been running a sale process for GreenSky, and may take a writedown on the $500 million of goodwill, or the premium it paid above the assets’ book value, Goldman President and Chief Operating Officer 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.
Source: Business-Standard