Shutterstock Public Offering

Posted on 8/14/2020 by Jim Pickerell | Printable Version | Comments (0)

On Wednesday Shutterstock announced a public offering of 2,580,000 shares of its common stock at a price to the public of $48.50 per share. Of this total 2,064,000 of the shares are owned by Jon Oringer, Shutterstock's Founder, Executive Chairman of the Board. The other 516,000 shares are owned by the company.

Mr. Oringer will net $100,104,000 from the sale of his shares and the company will earn $25,026,000 from its sale of 516,000 shares bringing the total for the public offering to $125,130,000.

In addition, Mr. Oringer granted the underwriters a 30-day option to purchase up to an additional 387,000 shares of common stock which at $48.50 each would possibly net him an additional $18,769,500 if all the share sell. The offering is expected to close on August 14, 2020, subject to the satisfaction of customary closing conditions.

Currently the company has a total of 35,700,000 shares outstanding. The current price of the stock is $48.07. Thus, the total value of all the shares is $1,716,099,000.

On August 3, 2020 Oringer owned 16,086,327 shares. On the 3rd and 4th he sold 85,000 shares for a total of $4,645,801.97 and still owned 16,001,327 or 44.8% of the total shares outstanding. After the sale of an additional 2,064,000 on August 12 Oringer will still own 14,937,317 shares or 41.8% of the shares outstanding.

On April 27, 2020, the day Shutterstock announced its Q1 results the stock traded at $38.90. On July 28 when they announced their Q2 results the stock was trading at $51.06. By August 5th the stock had peaked at $58.42 per share.  On August 12th the stock took a big slide and ended the day at $48.43. Currently it is trading at $48.07 and has had a low for of $46.34 yesterday.

At $48.07 Oringer’s remaining 14,937,317 shares are worth $718,036,828.

It is also worth noting that in 2019 Shutterstock paid out a total of about $181,730,000 to its contributors who provide "ALL" the content Shutterstock licenses. And on May 26, 2020 they announced that business had been so bad that it would be necessary to dramatically reduce the future royalties they would pay contributors.

Isn’t capitalism wonderful?

Copyright © 2020 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 301-461-7627, e-mail: wvz@fpcubgbf.pbz


Be the first to comment below.

Post Comment

Please log in or create an account to post comments.

Stay Connected

Sign up to receive email notification when new stories are posted.

Follow Us

Free Stuff

Stock Photo Pricing: The Future
In the last two years I have written a lot about stock photo pricing and its downward slide. If you have time over the holidays you may want to review some of these stories as you plan your strategy ...
Read More
Future Of Stock Photography
If you’re a photographer that counts on the licensing of stock images to provide a portion of your annual income the following are a few stories you should read. In the past decade stock photography ...
Read More
Blockchain Stories
The opening session at this year’s CEPIC Congress in Berlin on May 30, 2018 is entitled “Can Blockchain be applied to the Photo Industry?” For those who would like to know more about the existing blo...
Read More
2017 Stories Worth Reviewing
The following are links to some 2017 and early 2018 stories that might be worth reviewing as we move into the new year.
Read More
Stories Related To Stock Photo Pricing
The following are links to stories that deal with stock photo pricing trends. Probably the biggest problem the industry has faced in recent years has been the steady decline in prices for the use of ...
Read More
Stock Photo Prices: The Future
This story is FREE. Feel free to pass it along to anyone interested in licensing their work as stock photography. On October 23rd at the DMLA 2017 Conference in New York there will be a panel discuss...
Read More
Important Stock Photo Industry Issues
Here are links to recent stories that deal with three major issues for the stock photo industry – Revenue Growth Potential, Setting Bottom Line On Pricing and Future Production Sources.
Read More
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

More from Free Stuff