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Home  Industry News Getty Images Agrees to Acquire WireImage
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Getty Images Agrees to Acquire WireImage |
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Written by Getty Images, Inc.
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Thursday, 22 February 2007 |
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Move Boosts Company's Capabilities in Fast-Growing Category
SEATTLE, Feb. 22 /PRNewswire-FirstCall/ -- It's no secret. Now,
more than ever, the world is fascinated with images of celebrities,
entertainers and athletes. So much so, in fact, that it's become one of
the fastest growing categories in the visual content business. Today,
Getty Images, Inc. (NYSE: GYI), the world's leading creator and
distributor of visual content, is announcing an acquisition that will
support the company's stated strategy of accelerating the growth of its
editorial imagery business.
Getty Images announced that it has entered into an agreement to
purchase WireImage, one of the leading creators of entertainment and
event imagery, for approximately $200 million in cash. The deal also
will include MediaVast, Inc. the owner of WireImage, and sub-brands
FilmMagic and Contour Photos. The acquisition is subject to regulatory
review and other customary closing conditions.
Getty Images announced that it has entered into an agreement to
purchase WireImage, one of the leading creators of entertainment and
event imagery, for approximately $200 million in cash. The deal also
will include MediaVast, Inc. the owner of WireImage, and sub-brands
FilmMagic and Contour Photos. The acquisition is subject to regulatory
review and other customary closing conditions.
"The demand for entertainment, event and celebrity imagery is growing
exponentially, and Getty Images has determined that there are great
growth opportunities in the category," said Jonathan Klein, co-founder
and CEO of Getty Images. "A key focus for us in the last several years
has been to grow our editorial imagery business, particularly in
international markets. The proposed acquisition of WireImage will
enable us to develop new products and services, including podcasts,
editorial video, multimedia, mobile, consumer offerings and exclusive
imagery. We are confident that the proposed acquisition will help us
expand our global entertainment and celebrity imagery business,
allowing us to satisfy growing customer demand in the U.S. and abroad."
Under the agreement, WireImage's founding photographers and key
executives have signed long term agreements to remain with WireImage
and Getty Images following the acquisition.
The acquisition will bring together two leading innovators within the
entertainment imagery category. Getty Images has made entertainment and
celebrity imagery accessible to a growing global entertainment
marketplace through its industry-leading Web site, featuring search in
local languages and purchase in local currencies, and leads the
industry in delivery speed, service and international distribution.
WireImage has built a reputation for depth and breadth of entertainment
coverage and has an innovative and customer-friendly Web site.
Several of the companies' product offerings complement each other. For
example, Getty Images' Exclusive by Getty Images offering, launched in
2006, and MediaVast's Contour Photos will combine to give customers
unprecedented access to celebrity portraiture and compelling editorial
features.
The business of entertainment imagery has grown significantly in recent
years, and like the many other players in the space, Getty Images has
benefited. The company has targeted this category for continued growth,
especially in non-English speaking countries, and the acquisition of
WireImage is expected to help the company expand the entertainment and
celebrity imagery segment.
Getty Images plans to maintain MediaVast's three brands: WireImage,
FilmMagic, and Contour Photos, and its Web sites. WireImage's team and
Getty Images will continue to generate new imagery for their respective
collections and make it available for online distribution, both in the
U.S. and globally.
"We are very excited to be joining Getty Images," said Jason Nevader,
co-founder and CEO of MediaVast. "Under the Getty Images umbrella our
customers will be able to take advantage of Getty Images' global,
localized e-commerce platform. Getty Images' breadth of products and
services, including their vast archival collections, will give our
customers more choice and richer, more accessible content."
The company estimates, on a preliminary basis, that the acquisition
will be neutral to earnings per share, excluding amortization, in 2007
and accretive to earnings per share on a GAAP basis in 2008.
WireImage's portfolio includes an online archive of over 8.5 million
images. The company has about 230 employees and offices in New York,
Los Angeles, Miami, Atlanta, Las Vegas, London, Hamburg, Tokyo,
Shanghai, Sydney, Madrid, and Amsterdam.
About Getty Images
Getty Images is the world's leading creator and distributor of visual
content and the first place creative professionals turn to discover,
purchase and manage imagery. The company's award-winning photographers
and imagery help customers create inspiring work which appears every
day in the world's most influential newspapers, magazines, advertising
campaigns, films, television programs, books and Web sites.
Headquartered in Seattle, WA and serving customers in more than 100
countries, Getty Images believes in the power of imagery to drive
positive change, educate, inform, and entertain. Visit Getty Images at http://gettyimages.com/. |
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Last Updated ( Thursday, 22 February 2007 )
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