Koch Equity Development is expected to make a $500 million, non-controlling investment in Getty Images. Getty says the equity investment is expected to close by the end of this year.
The Koch Equity Development investment allows the Getty family to retain control of its namesake company. In September the Getty family acquired 51% controlling interest that had been held by private equity firm the
Carlyle Group.
The Getty family said in a news release Koch won’t have input into the company’s content or editorial coverage.
It’s hard to tell what Kock expects to get for its $500 million since Getty does not seem to be growing, or have much of a chance to grow, and has about
$2.367 billion in debt. At the very least the Kock money should help Getty pay off some of its debt.
On the other hand, Koch Industries has huge profits that they must reinvest somewhere. Since 2003, Koch companies have invested more than $80 billion in acquisitions and other capital expenditures.
The Getty investment is the second by Koch Equity Development in a media company. Last year the company provided $650 million to magazine and broadcasting company
Meredith in its $1.8 billion acquisition of Time Inc.
“In September we announced my family were resuming control of Getty Images — a business that bears our name and one that we fervently believe in,” Mark Getty, co-founder and chairman, said in the release. “KED demonstrated they share a belief in Getty Images, a long-term outlook and focus on growth.”
Brett Watson, senior managing director and head of principal investments for Koch Equity Development, said it’s a chance to invest in a company that’s a “proven market leader” and has a “attractive business model.”
“Getty Images is one of those rare opportunities and we look forward to participating in the company’s sustained growth,” Watson said in the release.
A Koch Industries spokeswoman said Tuesday the company wouldn’t comment beyond the release.