Getty Buys iStockphoto . . .
Stock Asylum Staff Report
February 9, 2006
IStockphoto, the largest player in the growing "micropayment"
stock photography market, announced this date that it has been acquired
by Getty Images for $50 million.
The move makes Getty the second major stock supplier to invest in a micropayment distributor this year. JupiterImages announced January 24 that it had purchased 49.7 percent of Haap Media, a Hungarian company that operates a micropayment web site along with a site that offers free stock photography.
In a press release, iStockphoto said it will continue to operate as a separate brand, but will have access to the resources of Getty Images, which is the world's largest supplier so stock photography.
"We have pioneered most of the important developments in the imagery industry in the last ten years." said Getty CEO Jonathan Klein in quote reproduced in the iStockphoto press release. "This time we want to help grow and champion the sort of revolutionary thinking iStockphoto represents as we lead the imagery business to the next stage of growth, serving all markets at every price point. Getty Images is committed to supporting iStockphoto as a community of participation and innovation."
IStockphoto President and CEO Bruce Livingstone will continue to lead the company. Livingstone said the relationship with Getty should "extend the reach of our contributors, exposing their work to untapped global markets."
As a micropayment site, iStockphoto licenses royalty-free photographs, vector files and Flash files for as little as $1. Very large digital image files are licensed for as much as $40. Most photographers and other artists receive 20 percent of the money collected from sales of their images.
The company, based in Calgary, Alberta, Canada, had been rumored to be for sale for several weeks. The rumors first appeared publicly in the StockPhotoTalk blog. IStockphoto has more than 600,000 images online from 20,000 contributors and claims to be adding 12,000 images weekly.
IStockphoto recently upgraded its web site, improving download times and adding new services like "BuyRequest," a complex feature that, among other things, lets image buyers "make 'Open Offers' for custom images and even hire specified photographers to shoot 'On Spec'."
Terms of the agreement included a $45.7 million immediate payment with $4.3 million held in escrow. The escrow money will be released to more than 30 key employees as they complete one to three years of continued employment with iStockphoto. IStockphoto was founded in 2000 as a free image exchange web site for designers.
Getty Images can be found at: http://www.gettyimages.com
IStockphoto is at: http://www.istockphoto.com
StockPhotoTalk is at: http://talks.blogs.com/phototalk
