NEW YORK ( TheStreet) -- Facebook will be forced to disclose its financials or go public by April 2012, according to reports. In a document distributed to Goldman Sachs ( GS) clients interested in participating in the firm's private share offering in Facebook, the social networking giant said it intends to cross the 500 shareholder limit this year, which will trigger an SEC rule that says companies must file public information even if their shares don't trade publicly.
Facebook has faced criticism that it structured its private share offering with Goldman and Russian investment firm Digital Sky Technologies to avoid reporting its financials. Goldman and DST formed a special purpose vehicle to allow a pool of investors to be considered one shareholder. The Palo Alto, Calif.,-based company posted a profit of $355 million on $1.2 billion in revenue during the first 9 months of 2010, according to the document. --Written by Olivia Oran in New York. >To follow the writer on Twitter, go to http://twitter.com/Ozoran. >To submit a news tip, send an email to: firstname.lastname@example.org.