Getty Considering At Least One Takeover Offer

Posted on 2/8/2008 by Jim Pickerell | Printable Version | Comments (0)

Reuters has reported that when Getty Images' deadline for bids closed on Feb. 4, there was at least one takeover offer. It was unclear how firm the offer (or offers) were and whether they were for all or parts of the company.

Some analysts have speculated that iStockphoto might be the most valuable segment of the company, and that some buyers might be interested in acquiring just that division. However, it seems unlikely that Getty would be willing to sell off iStockphoto alone and more likely that it is looking for an all-or-nothing deal.

In discussing the potential sale during the recent Getty Images conference call with investment analysts, Fred Searby of JP Morgan asked CEO Jonathan Klein, "What's the logic for now?" He  pointed out that the company's hyperbolic growth is gone and while stable, and generating fairly substantial free cash flow, a year ago they could probably have taken the company private or sold private equity at a much higher multiple than today.

Klein responded that at no point Getty Images has "talked about sale. We've talked about strategic alternatives." Klein also told Reuters, "We have not said anything about what those alternatives may be. It is our obligation as a board to look at the different alternatives to drive shareholder value when you generate as much cash as we do."

Copyright © 2008 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

Jim Pickerell is founder of, 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:  


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