Jupitermedia (JUPM-NASDAQ) has confirmed that it is in discussions with Getty Images, Inc. (GYI-NYSE) regarding a potential sale of the company to Getty Images in a cash transaction that would be valued at $9.60 per share, subject to the negotiation and execution of a definitive agreement and other related agreements. Getty Images’ proposed acquisition is also conditioned on the JupiterWeb business and related assets being sold to a third party concurrently with the consummation of the transaction. Alan M. Meckler, Chairman & CEO of Jupitermedia, has indicated a willingness to acquire such assets at a price that Getty Images has indicated would be acceptable to it, in the event no third party bidder offers to purchase the JupiterWeb business and related assets at a higher price prior to the closing of the proposed acquisition of Jupitermedia by Getty Images.
Here is what is so ironic about this: This would mark Alan Meckler’s 3rd dancecard with Internet.com and JupiterWeb properties if this goes through in this manner. He repurchased Internet.com back after the first sale, and this property has been regurgitated by him more than once. While many would say he has gotten favorable treatment, if he can pull this off he should be nicknamed the Teflon Don. This would be short of the ‘up to $11.00’ that Goldman Sachs just noted as fair and within Getty strategy in the morning research notes.
We would also note that JUPM is one that had actually made it onto an initial screen of Internet properties that could be for sale. However after looking at the balance sheet the bulk of the ‘book value’ was all attributed to Goodwill, Intangibles, and ‘other’ assets. Arguably, their goodwill and ‘other’ is where the value is, but these are arduous and highly subjective in calculations. There are 2 basic stock photo buyers out there: Getty Images and Bill Gates. So we never took this above a “watch list” rating in our BAIT SHOP of buyout candidates.
Jon C. Ogg
February 22, 2007
Jon Ogg can be reached at email@example.com; he does not own securities in the companies he covers.