Jupiterimages Sells To Getty For $96 Million
Getty Images Inc. (NYSE:GYI), the $2 billion image syndication machine has opened it’s wallet to buy-out Jupiterimages, one of their biggest competitors. Jupitermedia Corporation (NASDAQ:JUPM) is the parent company of Jupiterimages.
Getty Images has made a definitive agreement to buy-out Jupiterimages from Jupitermedia for $96 million in cash. The Jupiterimages brand and website will be integrated into Getty Images.
“The digital content market is expanding, and the customers of both Getty Images and Jupiterimages will benefit from the combination of these businesses,” stated Jonathan Klein, co-founder/CEO of Getty Images in a press release. “Jupiterimages’ customers already appreciate its value-based offerings, and through this acquisition we will be able to offer more content, better technology, more customer service and additional local content. Combining Jupiterimages’ product with Getty Images’ extensive media assets and global distribution will further enhance Getty Images’ offerings and provide more relevant content to both companies’ customers while extending the presence of the Jupiterimages brand to customers around the world.”
This acquisition will give Jupitermedia a lot of cash to play around with as their stock price has been declining for the past year. Back in March 2000, Jupitermedia stock was trading at $56.00 per share. Now their stock is trading at between $0.70-$1.40 per share. This gives them a market cap of about $25 million. What will Jupitermedia do with this sudden infusion of cash? Pulse 2.0 will report it down the line.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry