Goldman Sachs may book write-down in the value of GreenSky as sales process continues: CNBC

Synchrony Financial (SYF), KKR & Co. (KKR), Apollo Global Management (APO), Sixth Street Partners and Warburg Pincus have bid on the installment loan business of Goldman Sachs Group Inc.'s (GS) 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. If that happens, Goldman Sachs would have to take a large write-down on the value of the business. The investment bank announced plans to sell GreenSky in April. On June 1, Goldman Sachs President John Waldron said, "there will be some noise in our P&L as we work through the execution of these component pieces" of its consumer business, which includes Marcus and GreenSky. The bank is studying potential impairments to the $500 million of goodwill in its consumer platform as well as intangibles. The loan book of GreenSky may or may not be sold separately, he said. Goldman Sachs stock is down 1.4%. A Goldman Sachs spokesperson told MarketWatch the bank is pleased with the participation of bidders but declined to comment further on the sales process until it's completed.

-Steve Gelsi

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06-23-23 0955ET

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