Visual China Group the company that
acquired Corbis in January 2016 has seen a more than 50% decline in value as an investment since the purchase and a 20% decline in the last month. VCG is a publicly traded company on the Shenzhen Stock Exchange.
While the managing and licensing of visual content is a major part or VCG’s business, the parent company is also involved in a number of related business including radio and television transmission technology, Internet transmission, Internet games and entertainment, mobile communications network, gaming and entertainment technology, and computer software development. Thus, the activity of the company stock is not solely reflective of what is happening in the Chinese stock photo market.
According to sources in China, part of the reason for the recent decline is an overall decline in the Shenzhen stock market. However, VCG's decline is twice as large as the Chinese stock market in general.
Even at its current stock price of 19.13 CNY the outstanding shares of VCG are worth $2 billion USD but the company has less than $100 million in revenue. Sources indicate that another 50% drop is certainly possible.
VCG has been buying low PE assets to grow its revenue and lower its PE. But lack of growth in its core photo licensing business and the fact that it is unable to grow revenue in all its other expanded businesses is making it a much less attractive investment.
VCG’s net profit as a Getty Images agent is 36.5%.