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Author Topic: Freepik about to be acquired by investment/private equity firm EQT  (Read 514 times)

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« on: June 10, 2020, 23:09 »
+4
Another member posted in one of the Shutterstock threads about the pending acquisition of Freepik - I hadn't seen anything about this, but I figured anyone trying to help Freepik grow is bad news for every other agency, and for those of us who contribute to every other agency.

So it doesn't get buried in unrelated discussion, I thought I'd post the links I found here. A couple of quotes from EQT talking up their acquisition & plans for growing it:

"(Freepik)...is today the global leader in its space and is the largest freemium provider of digital visual content in the world. Freepiks growth is evidenced by a rapidly expanding community of 20 million registered users who are supported by a network of over 450 in-house freelancer graphical designers and a strong external contributor base."

"Freepik plans to further penetrate existing markets, such as US and Asia, ultimately, aiming to become the market leading and go-to platform for online content creators and functional users around the world"

Tech Crunch article from May 28

https://techcrunch.com/2020/05/28/eqt-acquires-freemium-graphics-and-stock-photo-marketplace-freepik/

EQT's announcement on twitter May 27

https://twitter.com/eqt/status/1265886988336607232

Crunchbase profile of EQT (and I couldn't find anything about the NYSE stock ticker that is mentioned there)

https://www.crunchbase.com/organization/eqt-holdings#section-overview

EQT's LinkedIn page

https://www.linkedin.com/company/eqt-group/

EQT's press release on their own site

https://www.eqtgroup.com/news/Press-Releases/2020/eqt-acquires-freepik-company-the-global-leading-freemium-provider-of-digital-visual-content/

StockPhotoSecrets

https://www.stockphotosecrets.com/news/freepik-acquired-by-eqt.html

Consultancy.eu

https://www.consultancy.eu/news/4271/drake-star-partners-advises-spains-freepik-on-investor-deal

Analyze Markets

https://www.analyzemarkets.com/en/intelligence/eqt-to-acquire-majority-stake-in-spanish-digital-graphic-content-provider-freepik



« Reply #1 on: June 10, 2020, 23:21 »
+4
Thanks for the info. I'm going to cry in the room for a moment.

« Reply #2 on: June 10, 2020, 23:24 »
+2
The first  time I hear about them is during the ss discussion. Hm.

ETA: at least for photos the quality is mostly lousy.

And in total they only have 8 million files.

I really cannot imagine quality producers giving them content.
« Last Edit: June 10, 2020, 23:36 by cobalt »


« Reply #4 on: June 11, 2020, 00:34 »
+1
The first  time I hear about them is during the ss discussion. Hm.

ETA: at least for photos the quality is mostly lousy.

And in total they only have 8 million files.

I really cannot imagine quality producers giving them content.

If you search for them here, you'll see all the dust-ups in the past.

I think the issue is that if they do well, it drives down even further buyer expectations for what they have to pay. From the contributor side, more contributors will mean diluted earnings - they don't pay much per download but the volume for each contributor is high, so (if you can keep the pool of contributors small) earnings are reasonable.

But this sort of business model is the definition of unsustainable, IMO. Especially as the new owners want to grow the business. Who wants to see Shutterstock's 10 cent royalties anywhere else???

« Reply #5 on: June 11, 2020, 00:51 »
0
In one of the articles in Spanish, they confirm that they will dedicate themselves to video files.

Yes, the number of contributors is the key to the taxpayer's benefit, but also the increase in customers at highly competitive prices.

Affiliations, some audio / music, advertising, .....

Adobe is our hope. I'm going to cry a little more to the bedroom.
« Last Edit: June 11, 2020, 00:54 by Tenebroso »

« Reply #6 on: June 11, 2020, 01:09 »
+1
In one of the articles in Spanish, they confirm that they will dedicate themselves to video files.

Yes, the number of contributors is the key to the taxpayer's benefit, but also the increase in customers at highly competitive prices.

Affiliations, some audio / music, advertising, .....

Adobe is our hope. I'm going to cry a little more to the bedroom.

entering the video market will burn us alive.
get ready for cheap video market now.

this microstock industry is getting worst from bad, I will not recommend anyone to come to this industry now.

« Reply #7 on: June 11, 2020, 01:40 »
+2
Oh, good luck to them trying to get high quality video content.

The video producers have been really good at sticking together.

There are all kinds of sites that offer cheap video, but the quality is low.

Simple economics, if a site cannot reimburse production costs, the content will bot be uploaded or disappear like on SS.

« Reply #8 on: June 11, 2020, 01:47 »
+1

Simple economics, if a site cannot reimburse production costs, the content will bot be uploaded or disappear like on SS.


As far as Shutterstock goes, video is the one category that isn't going down

http://shuttercounter.ddns.net/

I don't follow the economics on that side, but possibly it's that the big hit for video is January 1 with a reset to the minimum royalty rate. Knowing that it is coming, I'm puzzled that the uploads are growing, but perhaps people want to take out all the royalties they can in 2020 & then complain?

« Reply #9 on: June 11, 2020, 01:59 »
+2
That's simple economics..

Its a short term game of freepik.

Give everything for free and cheap, earn money and exit the market.

And that's what the owner did. They sold it.
If the business was success for them, they would never sell it.

Shutterstock is(or was) far better than them, imagine if SS also followed the freemium concept, everyone would have been destroyed.


 

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