A picture may be worth a thousand words, but is a whole library of them worth $1.5 billion? Iconic digital media company Getty Images Inc. seems to think it might and said Tuesday it has hired Goldman, Sachs & Co. as its financial adviser and Weil, Gotshal & Manges LLP as its legal adviser to assist it in exploring strategic alternatives to enhance shareholder value.
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The potential sale, which has been rumored for months, has attracted interest from several possible buyers including private equity firms Bain Capital and Kohlberg Kravis Roberts & Co., according to a report in The New York Times.
A sale price of $1.5 billion, however, would only be a small premium to the company's current market capitalization of $1.46 billion. And, with the credit crunch, and the "R" word sending markets into a tailspin, any buyer is likely to face obstacles in arranging financing.
The company, known for its high-quality images, has done a series of high-profile acquisitions. Getty Images bought Eastman Kodak Co.'s Image Bank in 1999 and MediaVast for $200 million, its major competitor, in 2007. Getty also bought iStockphoto.com for $50 million and ventured into the music scene with the acquisition of Pump Audio.
Getty plans to release fourth-quarter and year-end results on Jan. 31. - Donna Block
See story from The New York Times
