Jupitermedia to Sell Image Unit to Getty
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Jupitermedia said it will sell its online images business to Getty Images for $96 million in cash, leaving it to focus exclusively on its online media division.
The deal would allow it to pay off all of its bank debt, Jupitermedia (NASDAQ: JUPM) said. But the company expects to take a non-cash loss of about $95 million when the deal closes.
Chief Executive Alan Meckler and others, who collectively hold about 35.9 percent in Jupitermedia, have agreed to vote in favor of the deal.
It also said that, following the completion of the sale, Jupitermedia will continue to operate its Online media business, which consists of five distinct networks: internet.com and EarthWeb.com for IT and business professionals; DevX.com for developers; and Mediabistro.com and Graphics.com for media and creative professionals. Jupitermedia is the parent company of this publication.
The transaction is not subject to a financing condition, the company said in a statement.
Jupitermedia will retain ownership of its Peoria, Illinois building and property and lease the facility to Getty Images.
Merrill Lynch & Co is acting as financial advisor, while Willkie Farr & Gallagher LLP is serving as legal advisor to Jupitermedia.
Getty Images, the world's largest provider of stock photography, had been bought by private equity firm Hellman & Friedman in February.