Variety owns the rights to pictures from Hollywood and other points key for the entertainment industry and fashion. In particular, the magazine, which was founded over a century ago, publishes a photo from the awards ceremony and podiums. These images should allow Shutterstock, whose capitalization at the stock exchange is $ 2.2 billion, come out on top in the world in this niche. The owner of Variety - the company Penske Media Corporation - is reported to have agreed to the deal.
The two companies are going to talk about the partnership at Creative Advertising Festival "Cannes Lions" on Monday. According to Jay Penske, executive director of Penske Media Corporation, cooperating with Shutterstock in the long run will bring his business to $ 50 million.
One can call this deal a priori beneficial to PMC, because it will retain the right to sold Shutterstock photos. Partner also will be able to sell these images to their users, whose number now accounts to 1.3 million.
Previously, the PMC was an agreement on the joint implementation of photos from Getty Images, however, Jay Penske says that Shutterstock’s proposal looks more attractive. And it's not in terms of the transaction, but the fact that, according to Penske, Shutterstock is currently the most promising platform, which expects rapid and long-term growth. Another Getty’s shortcoming is too serious debt burden of the company.
Despite its popularity, the service Getty Images cannot really be considered as one of the healthiest of players from a financial point of view. From 2008, Getty Images was the owner of an investment fund Hellman & Friedman. In 2012, the owners agreed to sell a controlling stake in the Image Bank investment fund Carlyle Group for $ 3.3 billion while maintaining shareholdings. At the time, Getty Images’ leverage reaches $ 2.5 billion, according to agency Moody's.
But Shutterstock is an independent, besides the public and companies. IPO on the New York Stock Exchange was held just in 2012. The player himself had made acquisitions, and recently has been particularly closely following the world of fashion and entertainment. Recently, for example, a British agency Rex Features was acquired for $ 33 million, which owned the rights to 12 million photos from this sphere. Penske Media Corporation also makes such transactions, clearly hoping for a good reward for the amount of exclusive portfolio. For this purpose, it has bought Fairchild Fashion Media, formerly owned by Condé Nast.
Shutterstock representatives argue that this expansion of the business is of consumers’ interests. Adding photos for fashion magazines and the press to the archive of can bring in up to $ 750 million, if we take the estimated value of all niches.
Cooperation with the PMC, in any case, will be mutually beneficial, as photographers are often not allowed on the red carpet and fashion shows. PMC will provide photos of their accredited staff and Shutterstock may got a much larger pool of buyers.
Apart from Getty Images, Shutterstock has to compete with Adobe, that a week ago launched its own photo bank. Adobe Stock offers around 40 million photos, whilst Shutterstock have 56 million, and Getty - 100 million.
source: ft.com
The two companies are going to talk about the partnership at Creative Advertising Festival "Cannes Lions" on Monday. According to Jay Penske, executive director of Penske Media Corporation, cooperating with Shutterstock in the long run will bring his business to $ 50 million.
One can call this deal a priori beneficial to PMC, because it will retain the right to sold Shutterstock photos. Partner also will be able to sell these images to their users, whose number now accounts to 1.3 million.
Previously, the PMC was an agreement on the joint implementation of photos from Getty Images, however, Jay Penske says that Shutterstock’s proposal looks more attractive. And it's not in terms of the transaction, but the fact that, according to Penske, Shutterstock is currently the most promising platform, which expects rapid and long-term growth. Another Getty’s shortcoming is too serious debt burden of the company.
Despite its popularity, the service Getty Images cannot really be considered as one of the healthiest of players from a financial point of view. From 2008, Getty Images was the owner of an investment fund Hellman & Friedman. In 2012, the owners agreed to sell a controlling stake in the Image Bank investment fund Carlyle Group for $ 3.3 billion while maintaining shareholdings. At the time, Getty Images’ leverage reaches $ 2.5 billion, according to agency Moody's.
But Shutterstock is an independent, besides the public and companies. IPO on the New York Stock Exchange was held just in 2012. The player himself had made acquisitions, and recently has been particularly closely following the world of fashion and entertainment. Recently, for example, a British agency Rex Features was acquired for $ 33 million, which owned the rights to 12 million photos from this sphere. Penske Media Corporation also makes such transactions, clearly hoping for a good reward for the amount of exclusive portfolio. For this purpose, it has bought Fairchild Fashion Media, formerly owned by Condé Nast.
Shutterstock representatives argue that this expansion of the business is of consumers’ interests. Adding photos for fashion magazines and the press to the archive of can bring in up to $ 750 million, if we take the estimated value of all niches.
Cooperation with the PMC, in any case, will be mutually beneficial, as photographers are often not allowed on the red carpet and fashion shows. PMC will provide photos of their accredited staff and Shutterstock may got a much larger pool of buyers.
Apart from Getty Images, Shutterstock has to compete with Adobe, that a week ago launched its own photo bank. Adobe Stock offers around 40 million photos, whilst Shutterstock have 56 million, and Getty - 100 million.
source: ft.com
