Jupitermedia To Be Acquired By Getty?
The New York Post reports that Getty Images is considering a purchase of digital image rival Jupitermedia Corp. The purchase price would likely be an amount substantially higher than Jupitermedia’s current stock price of around $8 per share.
Over the last few years Jupitermedia has become a major player in online imaging by acquiring more than 25 online subscription image sites including Comstock and Photos.com.
According to the article, "…it is unclear how much Getty is willing to pay for Jupitermedia, but sources close to the deal said the image company could fetch more than $11 a share, or more than $450 including debt". That amounts to a $165 million premium over Jupitermedia’s market cap on Nasdaq. Getty may feel this is still a bargain since Jupitermedia’s 52 week high trading price was $18.81 per share.
Jupitermedia CEO Alan Meckler recently announced a major shift for his company back into the tradeshow and online content business. Could selling his Jupiterimages division be part of that strategy? It seems more likely than a sell of the entire company which would put Getty Images in the online publishing and tradeshow business.