Jupitermedia looks like Uranus
What is one of the best ways to make investors really want to revolt against you? You can try announcing you are in merger talks after market rumors, and then just as quickly announce that merger talks have terminated. This morning Jupitermedia (JUPM-NASDAQ) did just that. Here is what the company is saying today:On February 22, 2007, in response to articles that had been published in the business press and subsequent trading activity in Jupitermedia Corporation's stock, Jupitermedia issued a press release confirming that it was then in discussions with Getty Images, Inc. regarding a potential transaction with Getty Images. These discussions between Jupitermedia and Getty Images have now terminated. As stated in such press release, it continues to be the long-standing company policy of Jupitermedia not to confirm or deny market rumors.
Well, if you confirmed the rumors and then said talks have terminated, then what is your real policy? In all honesty, it was a wonder as to why Getty would have wanted to acquire Jupitermedia. There is that huge photo and content library that definitely has value, but Getty would be able to license this library far cheaper than it would have paid to just acquire the company. That diminshes the Getty-centric value since it isn't exclusive, but the balance sheet on JUPM made this one very expensive to Getty even if it was going to be only a $300-ish million deal for a $3 Billion company.
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The above is an excerpt from an article originally published by Jon Ogg at www.247wallst.com. To finish reading the original article click here.
Jon Ogg is a partner in 24/7 Wall St., LLC and he can be reached at ; he does not own securities in the companies he covers.Posted in: Stock Photo Companies
