ImageState Split Up

Posted on 5/17/2006 by Jim Pickerell | Printable Version | Comments (0)

9

IMAGESTATE SPLIT UP


May 17, 2006

Getty Images has made a deal to acquire the 17,000 John Foxx RF image collection from Image State for approximately $1.5 million or about $88 per image. The bankruptcy court still needs to approve this deal and it has not been officially announced. Some of these RF images do not have model releases so Getty may decide not to use them. Also, many of the images are up to ten years old and showing their age.

It is believed that the gross revenue generated for Image State by the John Foxx collection in 2005 was about $650,000 U.S. with about 73% of that coming from distributors and the rest from direct sales by the UK and U.S. offices.

Sources also indicate that Sheldon Marshall of Heritage Images made a bid of several hundred thousand dollars for the RM collection and this offer was accepted on May 12, 2005. It is believed that these images generated about $2.1 million for Image State in 2005 with approximately 40% of that revenue coming from the 50 or so distributors around the world that represent Image State.

Marshall, as many may recall, was the founder and CEO of VCG (Visual Communications Group) in the latter half of the 1990's. He was eventually replaced as CEO by Andrew Nugee who sold VCG to Getty Images in March of 2000. After leaving VCG, Marshall founded Convergence which later became Global State Holding, which later became Image State.

Some believe that even several hundred thousand dollars may have been a high price to pay for the RM side of Image State considering that many of the RM contributors may decide not to work with Marshall and demand that their images be returned.

In the last few months the staff at Image State has been sorting the transparencies that remained in the file and returning them to the photographers. It is believed that most of the images have either been retuned to the photographers or are on their way back. According to sources only a small percentage of the total collection remains in the offices. The administrators were asked to structure the deal so that any purchaser, (in this case Marshall) would be responsible to return all the images. However, it is unclear how the final deal was worded.

It is also believed that Marshall will be responsible to pay all royalties to photographers that are still outstanding.

It is estimated that gross revenue for the company for calendar 2004 was about $7 million and for 2005 it was a little under $6 million. Among those who were in the bidding for part or all of the company were: Corbis, Jupiterimages and Masterfile.



Copyright © 2006 Jim Pickerell. The above article may not be copied, reproduced, excerpted or distributed in any manner without written permission from the author. All requests should be submitted to Selling Stock at 10319 Westlake Drive, Suite 162, Bethesda, MD 20817, phone 301-251-0720, e-mail: wvz@fpcubgbf.pbz

Jim Pickerell is founder of www.selling-stock.com, an online newsletter that publishes daily. He is also available for personal telephone consultations on pricing and other matters related to stock photography. He occasionally acts as an expert witness on matters related to stock photography. For his current curriculum vitae go to: http://www.jimpickerell.com/Curriculum-Vitae.aspx.  

Comments

Be the first to comment below.

Post Comment

You must log in to post comments.

Stay Connected

Sign up to receive our FREE weekly email listing new stories posted.

Follow Us

Free Stuff

Recent Stories – Summer 2016
If you’ve been shooting all summer and haven’t had time to keep up with your reading here are links to a few stories you might want to check out as we move into the fall. To begin, be sure to complet...
Read More
Corbis Acquisition by VCG/Getty Images
This story provides links to several stories that relate to the Visual China Group (VCG) acquisition of Corbis and the role Getty Images has been assigned in the transfer of Corbis assets to the Gett...
Read More
Finding The Right Image
Many think search will be solved with better Metadata. While metadata is important, there are limits to how far it can take the customer toward finding the right piece of content. This story provides...
Read More
Where Is The Stock Photo Industry Headed?
For new readers, or those who may have missed some of what I have written over the last few months, the following are a list of stories worth looking at to get a sense of where the industry is headed.
Read More
Photography As A Career
It’s that time of year when high school seniors are waiting for college acceptance letters and thinking about future careers. If you know someone who is thinking about photography as a career you mig...
Read More
2014 Stories You May Have Missed
For many the end of the year is a time to review past experiences and consider whether it makes sense to chart a new course in the year ahead. Stock photography has changed dramatically for professio...
Read More
More Stories In 2014 You May Have Missed
Every so often I put together a list of the most important stories we’ve published in the recent past. If you are engaged in the business of stock photography the links below are to stories that we’v...
Read More
Getty: A Three Month Review
In all the excitement about 35 million FREE images it is worth looking back at some of things that have been happening at Getty Images in the last three months. After watching revenue decline for the...
Read More
State Of Stock Photo Industry: 2013
If you’re looking for an overview of the state of the stock photo industry as of October 2013 the stories listed below are a good place to start. Regular readers of Selling-Stock will have seen all t...
Read More
Education Market Shifts To Digital
If supplying pictures for educational use is a significant part of your business plan you need to be aware of how the market is trending toward digital delivery and how that is likely to affect the p...
Read More

More from Free Stuff