Under the deal, Getty would pay $96 million for all of Jupitermedia’s outstanding capital stock in exchange for Jupiterimages, the companies announced today in separate statements.
The price reflects a precipitous fall for Jupitermedia, whose stock imagery service was once the third biggest after Getty and Corbis. Just last year, Getty was in talks to buy Jupitermedia for a reported $400 million.
In comparison, Getty’s 2007 acquisition of MediaVast (including WireImage) was worth $202 million and its 2005 acquisition of Digital Vision was worth $165 million.
Jupitermedia, whose strategy hinged on creating libraries of wholly-owned digital content and selling subscription royalty-free services, has been on a downhill slide. The imaging division is the largest part of Jupitermedia. The whole company employs about 700 people.
Jupitermedia’s stock price, which once traded for over $60 and more recently hovered around $20, fell to below a dollar during the market downturn on October 10. The announcement today sparked a modest spike in Jupiter’s stock price – to a brief high of $1.17. The stock was trading at $0.72 at midday.
Jupitermedia also owns the Mediabistro.com site for media professionals (which it acquired for $23 million last year) and several other online businesses. Jupiter will continue to operate its online media division after the Getty sale.
The deal still must be approved by Jupiter shareholders and regulators. Jupitermedia chair and CEO Alan Meckler, along with other shareholders who control 35.9 percent of the company, have already agreed to the sale, Jupiter said in a statement.
Getty went private earlier this year in a sale to private equity company Hellman & Friedman. Getty reported 2007 revenues in $858 million and Jupitermedia reported 2007 revenues of $140 million, with a loss of $76 million due to an accounting write-down.
Getty Images said it will retain the Jupiterimages brand and Web site and integrate them with Getty Images technology.
In the statement, Getty CEO Jonathan Klein said, "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."
