News
JupiterMedia selling JupiterImages content licensing business to Getty for $96 million
Jupitermedia Corporation (JUPM) has announced that it has entered into a definitive stock purchase agreement to sell its Online Images business to Getty Images, Inc.(GYI) for the purchase price of $96 million in cash. Last year the companies had confirmed that they were exploring a sale with an asking price as high as $350 - $450 million, a far cry from the $96 million received in this transaction. The deal will allow Jupiter to pay off all of its bank debt, but the company expects to take a non-cash loss of about $95 million when the deal closes. “We believe that this transaction will be beneficial to Jupitermedia and its stockholders, both in the near term and the long run, as it will allow Jupitermedia to pay off all of its bank debt. Upon closing of the transaction, we will continue focus on the further development and growth of our Online Media division,” stated Alan Meckler Jupitermedia’s Chief Executive Officer.
Under the terms of of the deal, Jupitermedia has agreed to sell all of the outstanding capital stock of Jupiterimages Corporation ("Jupiterimages"), an Arizona corporation and a wholly owned subsidiary, to Getty Images, Inc. Completion of the transaction is subject to approval by Jupitermedia’s stockholders, regulatory approval and other customary closing conditions but has already been approved by the Board of Directors of Jupitermedia who is recommending that Jupitermedia’s stockholders approve the transaction. In addition the transaction is supported by Alan Meckler, a significant stockholder, and certain other stockholders, who collectively hold approximately 35.9% of Jupitermedia’s outstanding stock
Jupitermedia has stated that it will continue to operate its Online media business, which consists of five distinct networks: internet.com and EarthWeb.com for IT and business professionals; DevX.com for developers; and Mediabistro.com and Graphics.com for media and creative professionals.
Web: www.jupitermedia.com - www.gettyimages.com - Click here to view the original press release.
Related:
Getty and Jupiter end acquisition talks (Mar 07, 2007)
Jupiter confirms sale talks with Getty Images and potential sale price of $350 million (Feb 22, 2007)
Getty Images in talks to acquire rival JupiterImages (Feb 21, 2007)
Posted in: Getty Images, Jupiter Media, News, Stock Photo Companies
Comments(2)
post a comment »Ben Cob, October 24, 2008 [#]
So spineless Meckler finally throws in the towel and walks away from Jupiterimages, effectively admitting his abject failure to build or manage an International Business. The complete lack of any strategic vision or management ability at the top of Jupiter has been cruelly exposed by Getty, what a great deal they have struck. I am not sure the shareholders of Jupitermedia will think so and pity the poor employees who have been expected to show continual commitment, shame this has not been demonstrated by Meckler.
anonymous, October 24, 2008 [#]
I would love to see a posting by Getty on what they plan to do about all of the current Jupiter Images employees. I’m sure they are a bit worried about their job situation and it would probably help sales to know if when and where the bullet is coming from........