Jupitermedia, Getty Deal Falls Apart
Jupitermedia has ended talks with Getty images concerning a possible merger. In a press release from February 22 the company confirmed they were in discussions with Getty Images only after speculative articles had been written in the business press about the proposed deal.
Jupitermedia CEO Alan Meckler wrote in his blog about the termination of the deal.”Interestingly nobody would have noticed the end of a "possible" transaction if the deal had not been leaked by somebody based in New York City to the NEW YORK POST. Once the story was printed in the POST, investors rushed out and purchased Jupitermedia shares. Speculators decided to bet that a deal would be consummated.”
Clearly Meckler is not happy with whoever leaked information to the New York Post about the deal in the first place. Whatever obstacles there were between Getty Images and Jupitermedia may have been exasperated from the early leak to the press.
Yesterday Jupitermedia issued a press release that stated,” 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.”
On the news that the deal with Getty Images had fallen through, Jupitermedia stocks fell nearly 20 percent yesterday to $7.10. Shares of Getty fell 2.3 percent to $49.44.