News
Getty Images acquires Stockbyte for $135 million
Getty Images has announced the acquisition of Ireland-based Pixel Images Holdings Limited, the parent company of Stockbyte and Stockdisc for $135 million in cash. The acquisition of its largest image partner gives Getty approximately 80,000 wholly-owned images, 60% of which are already live on its site, without the future obligation to pay royalties. In addition to better margins, the wholly-owned content will also provide greater flexibility and there is a chance some of this content will find its way into the Creative Express subscription product and/or the micro-payment site iStockphoto. According to Stockbyte the royalty-free stock photography industry worldwide is estimated to be worth 500 million US dollars annually. Stockbyte and Stockdisc are believed to have captured a 10% share of this global market.
"Worldwide demand for imagery continues to grow as our customers increasingly explore new, image-rich communication platforms as a means to break through the clutter," said Jonathan Klein, Getty Images' co-founder and Chief Executive Officer. "The acquisition is in line with our strategy of acquiring and producing increased amounts of relevant wholly-owned imagery. The addition of the Stockbyte content will further enhance our ability to offer customers new licensing options, and will further extend our reach into the broadband-enabled and wireless platforms which are fast becoming a significant component of our customers' communications mix." Additionally, Getty stated in its press release that “Following a transition period, Stockbyte and Stockdisc will be available exclusively through Getty Images and its channel partners.” Meaning that the Stockbyte and Stockdisc brands will likely be removed from Getty's largest competitors Corbis and Jupiter Images.
Getty Images has added imagery through a number of key acquisitions in the recent past including Photonica, Digital Vision, Medio Images, and the micropayment site iStockphoto.
When asked about the impact this acquisition will have on the current staff and offices operated by StockByte, Deb Trevino, Getty Images' Vice President, Corporate Communications, had this to say. "As is the case with most acquisitions, there will be areas of duplication and overlap between Getty Images and Stockbyte. Due to our existing close Image Partner relationship and resulting wide-ranging integration, a large proportion of the work undertaken at Stockbyte will be quickly absorbed into the existing Getty Images workflow. As a result, many of the current job functions at Stockbyte will not be required in the newly integrated organization. Of course, Getty Images will treat Stockbyte employees fairly and with care and attention throughout the integration process." Mrs. Trevino added "We will be closing the Tralee office, but plan to maintain a presence in Ireland." According to Stockbyte's press release on the acquisition, "the principal shareholders in Stockbyte and Stockdisc will be creating a fund of €5 million euro for all 28 employees of Stockbyte and Stockdisc. This payment is an acknowledgement of the employees’ significant contribution to the growth and success of the two companies." It is not known how the €5 million euro will be divided up among the employees (28 equal portions would yield nearly €180,000 for each employee).
Rumors of the acquisition were first leaked by Jim Pickerell last week.
Click here to view the original press release from Getty.
Posted in: News, Stock Photo Companies
