Jupitermedia Corporation said today that it is selling its online images business to Getty Images for $96 million in cash. This sale will re-focus the company on the B2B content business which is arguably a step in the right direction.
Jupitermedia’s board of directors has approved the transaction and has recommended that its stockholders approve the deal as well. The deal has to receive regulatory approvals and customary closing conditions.
Alan Meckler, Jupitermedia’s Chairman, Chief Executive Officer and a significant stockholder, and certain other stockholders, collectively own 35.9 percent of the company’s outstanding stock, already have the votes lined up to agree to the deal.
With the sale of its image business Jupitermedia will now focus on its online media business, which consists of five networks: internet.com, EarthWeb.com for IT and business professionals; DevX.com for developers; and Mediabistro.com and Graphics.com for media and creative professionals.
Jupitermedia will retain ownership of its Peoria, Illinois building and property and lease the facility to Getty Images. Jupitermedia expects to incur a non-cash loss of about $95 million when the deal is completed.
“We believe that this transaction will be beneficial to Jupitermedia and its stockholders, both in the near term and the long run, as it will allow Jupitermedia to pay off all of its bank debt. Upon closing of the transaction, we will continue focus on the further development and growth of our Online Media division,” stated Alan Meckler.
Jonathan Klein, co-founder and CEO of Getty Images stated, “Jupiterimages has built a foundation that Getty Images will build upon to the benefit of customers worldwide”. Klein added, “Getty Images has always been dedicated to making strategic investments that will provide long-term value to our customers”.
A previous deal to sell Jupitermedia to Getty Images fell apart in February 2007. That deal according to press reports was for around $450 million, with a potential buyback of non-image assets such as internet.com for $100 million.
