Author Topic: Getty Images to become public company again in $4.8B SPAC deal (Read 4793 times)

rushay · « **on:** December 11, 2021, 01:27 »

https://www.geekwire.com/2021/getty-images-to-become-public-company-again-in-4-8b-spac-deal-building-on-seattle-tech-roots/

Level6 · « **Reply #1 on:** December 11, 2021, 01:54 »

everest · « **Reply #2 on:** December 11, 2021, 05:10 »

Banks are not giving them anymore money so they have to search for investors that take the risk. The debt necklace is choking them.A company that has been decreasing for the last decade. It doesn't look very bright. But who knows. Maybe Hellman & Friedman sees an opportunity and will make the same move down the road and to pay the new debt, contributors will get slashed to 5% commission. A race to the bottoms competing with the other juggernaut exploiting their contributors.

Level6 · « **Reply #3 on:** December 11, 2021, 10:17 »

Quote from: everest on December 11, 2021, 05:10

Banks are not giving them anymore money so they have to search for investors that take the risk. The debt necklace is choking them.A company that has been decreasing for the last decade. It doesn't look very bright. But who knows. Maybe Hellman & Friedman sees an opportunity and will make the same move down the road and to pay the new debt, contributors will get slashed to 5% commission. A race to the bottoms competing with the other juggernaut exploiting their contributors.

This is the problem with startups, their obsession with disrupting industries and destroying jobs and prices and racing to the bottom without realizing or in the case of stock, caring about how to make a profit.

From UBER to food delivery to stock, they all seem to be losing money and are massively in debt and only still around due to the millions in VC funding which eventually runs out.

Banks don't give these businesses or startups money for a reason and that is their business models don't work, any kid who has run a lemonade stand knows better.

The VC's, investors, shareholders, etc should be saying to every one of them, raise you prices like every other business and we want to see a profit in six months or we're out.

Those in the biz long before me know there used to be a good living to be had in this and now the agencies have disrupted the industry and are still racing to the bottom all while prices of everything else in the US and Canada are going up.

Now they are running out of money or credit, the banks laugh at their business model and to make "more money" they lower prices and give our content away for free....to make more money?, and also cut our commissions.

NONE of the people that run these startups could run a lemonade stand and break even.

H2O · « **Reply #4 on:** December 11, 2021, 10:52 »

Lets hope this is the end of Getty, of course someone or company will come in and buy the smouldering wreck that is left.

Personally, the best way forward would be if all the parts were sold off, including the individual photo libraries they have.

The more it is broken up the better, as in my opinion this would create greater competition and the receivers would then get more money, because lets face it, the problem with them going bust will be, they will owe the contributors millions.

The other point I would make is, if they do go bust, how do we delete our Portfolio's, stopping them from being sold for a pittance, along with even more new, 'Good News' Terms and Conditions.

As for being worth $4.8 Billion, this surly is a joke.

Uncle Pete · « **Reply #5 on:** December 11, 2021, 11:16 »

Quote from: H2O on December 11, 2021, 10:52

Lets hope this is the end of Getty, of course someone or company will come in and buy the smouldering wreck that is left.

Personally, the best way forward would be if all the parts were sold off, including the individual photo libraries they have.

The more it is broken up the better, as in my opinion this would create greater competition and the receivers would then get more money, because lets face it, the problem with them going bust will be, they will owe the contributors millions.

The other point I would make is, if they do go bust, how do we delete our Portfolio's, stopping them from being sold for a pittance, along with even more new, 'Good News' Terms and Conditions.

As for being worth $4.8 Billion, this surly is a joke.

So well said...

Quote from: everest on December 11, 2021, 05:10

Banks are not giving them anymore money so they have to search for investors that take the risk. The debt necklace is choking them.A company that has been decreasing for the last decade. It doesn't look very bright. But who knows. Maybe Hellman & Friedman sees an opportunity and will make the same move down the road and to pay the new debt, contributors will get slashed to 5% commission. A race to the bottoms competing with the other juggernaut exploiting their contributors.

Same for your points.

I'm thrilled, And of course excited!

Under terms of the deal, the total equity investment of $1.2 billion raised in the deal will be used to pay down existing debt and capitalize Getty's balance sheet. After the deal closes, which is expected to occur in the first half of 2022, Getty Images will be listed on the NYSE under the ticker symbol "GETY," and current Chief Executive Craig Peters will continue to lead the company. "We are excited to partner with CC Neuberger Principal Holdings II,"

Another one on the way.

flywing · « **Reply #6 on:** December 11, 2021, 11:39 »

Quote from: Level6 on December 11, 2021, 10:17

...and now the agencies have disrupted the industry and are still racing to the bottom all while prices of everything else in the US and Canada are going up.

Yeah, even cable tv and streaming services dare to hike prices.

Jo Ann Snover · « **Reply #7 on:** December 11, 2021, 12:01 »

" About $576 million of the expected $1.38 billion in cash from the SPAC deal will go toward paying down existing debt."

It's nice to get some financials on just how much of a mess the two private equity deals made by siphoning cash out of the company. I can't see how it will help Getty (versus the vultures who want their cash now) to have to persuade Wall Street they're a great stock. We lost less than last year isn't such a great message.

"Getty noted that its marketing spending is about 6% of total revenues, compared with 12% of revenues spent on marketing by its rival Shutterstock, citing a “significant opportunity” to capture more of the global market by boosting its own sales and marketing spending following the completion of the deal."

Spending more on marketing isn't going to compete with Shutterstock whose "margin optimization" program (i.e. slashing contributor royalties) has given them pricing leeway Getty doesn't have. I know there's lot's of exclusive stuff that Shutterstock doesn't have and Getty does, but I'm betting "good enough" will win out. But then my crystal ball is broken, so who knows

https://www.bloomberg.com/news/articles/2021-12-10/getty-images-to-list-in-4-8-billion-deal-with-neuberger-spac

The idea that they're all aglow about chasing trends (NFTs) is also not a good sign (IMO). Monetizing culture...

"“You think about the NFTs as the monetization of culture,” he said, adding that Getty supplies content to Dapper Labs, the creators of NBA Top Shot, an NFT marketplace where fans can buy and sell NBA collectibles. “Passions around sports, fashion, celebrity, music, all those things -- I think that’s a real opportunity for us, and one that we have yet to really scratch the surface of,” said Peters."

Pixingphotos · « **Reply #8 on:** December 11, 2021, 12:05 »

Quote from: everest on December 11, 2021, 05:10

Banks are not giving them anymore money so they have to search for investors that take the risk. The debt necklace is choking them.A company that has been decreasing for the last decade. It doesn't look very bright. But who knows. Maybe Hellman & Friedman sees an opportunity and will make the same move down the road and to pay the new debt, contributors will get slashed to 5% commission. A race to the bottoms competing with the other juggernaut exploiting their contributors.

Hellman & Friedman just want to squeeze more money out of it... I would not buy their stocks, since they are losing money and the business model is going down the toilet. It just would be a very bad investment ...

For Real · « **Reply #9 on:** December 11, 2021, 20:34 »

When someone is drowning most people would throw them a life preserver but in this case I would toss them (Getty) a cinder block and walk away saying --"Good riddance!"

Mimi the Cat · « **Reply #10 on:** December 11, 2021, 23:26 »

Quote from: For Real on December 11, 2021, 20:34

When someone is drowning most people would throw them a life preserver but in this case I would toss them (Getty) a cinder block and walk away saying --"Good riddance!"

Or to paraphrase an old lawyer joke "how do you stop Getty from drowning? ~ take your foot off its head"

offisapup · « **Reply #11 on:** December 12, 2021, 02:58 »

Well, they acquired Unsplash so they do deserve to drown with a splash...

Milleflore · « **Reply #12 on:** December 12, 2021, 13:50 »

Quote from: rushay on December 11, 2021, 01:27

https://www.geekwire.com/2021/getty-images-to-become-public-company-again-in-4-8b-spac-deal-building-on-seattle-tech-roots/

Oh god, not the Carlyle Group :-(

Now it all makes sense. This is what they do to all the companies they 'invest' in. Rack up huge debt to buy in and then charge it back to the organisation who is then lumbered with massive debt for the rest of its life. They are no better than a real life Gordon-Gekko.

So this is how it all started? Everything that has happened since in the stock photography industry has been a knee-jerk reaction. Race to the bottom pricing by Getty, bigger databases (SS circa 2018: We have the largest library!), lower standards, and now over million contributors and a whole heap of crapstock (using Pete's terminology, which I love!. lol) Supply goes up. Price goes down even further.

Thanks for posting the link - this is the first time in my 8 years here that I realised it all started with the Carlyle Group. Makes sense now. The agencies and the photographers have had no chance really. Thats how you kill off an industry - massive debt. Quite depressing really.

ETA. Quote from that link:

"The company’s net loss improved to $39 million last year, from a loss of $51 million the year before. However, after adjusting that number for costs including $125 million in interest expense and a $59 million hit from foreign exchange rates, the company said its profits would have been $269 million last year.

Getty has been weighed down by debt since its 2012 acquisition by The Carlyle Group. About $576 million of the expected $1.38 billion in cash from the SPAC deal will go toward paying down existing debt."

Uncle Pete · « **Reply #13 on:** December 13, 2021, 09:04 »

Quote from: Annie on December 12, 2021, 13:50

Quote from: rushay on December 11, 2021, 01:27
https://www.geekwire.com/2021/getty-images-to-become-public-company-again-in-4-8b-spac-deal-building-on-seattle-tech-roots/

Oh god, not the Carlyle Group :-(

Now it all makes sense. This is what they do to all the companies they 'invest' in. Rack up huge debt to buy in and then charge it back to the organisation who is then lumbered with massive debt for the rest of its life. They are no better than a real life Gordon-Gekko.

So this is how it all started? Everything that has happened since in the stock photography industry has been a knee-jerk reaction. Race to the bottom pricing by Getty, bigger databases (SS circa 2018: We have the largest library!), lower standards, and now over million contributors and a whole heap of crapstock (using Pete's terminology, which I love!. lol) Supply goes up. Price goes down even further.

Thanks for posting the link - this is the first time in my 8 years here that I realised it all started with the Carlyle Group. Makes sense now. The agencies and the photographers have had no chance really. Thats how you kill off an industry - massive debt. Quite depressing really.

ETA. Quote from that link:

"The company’s net loss improved to $39 million last year, from a loss of $51 million the year before. However, after adjusting that number for costs including $125 million in interest expense and a $59 million hit from foreign exchange rates, the company said its profits would have been $269 million last year.

Getty has been weighed down by debt since its 2012 acquisition by The Carlyle Group. About $576 million of the expected $1.38 billion in cash from the SPAC deal will go toward paying down existing debt."

Yes, leaders of the industry who like the pied piper led it off photographers and their business into the woods.

“another milestone in the transformation of Getty Images.” So they are inferring this is a good thing?

I'm really excited to see they brought their losses down to only $39 million. Just like SS profits, while losing market, charging less and other downturns, I think most of us know where the new profits and adjustments came from? The artists cut gets smaller and smaller.

Coming from someone like you who understands business and accounting, I think you have it.

For Real · « **Reply #14 on:** December 13, 2021, 09:25 »

Quote from: Annie on December 12, 2021, 13:50

Quote from: rushay on December 11, 2021, 01:27
https://www.geekwire.com/2021/getty-images-to-become-public-company-again-in-4-8b-spac-deal-building-on-seattle-tech-roots/

Oh god, not the Carlyle Group :-(

Now it all makes sense. This is what they do to all the companies they 'invest' in. Rack up huge debt to buy in and then charge it back to the organisation who is then lumbered with massive debt for the rest of its life. They are no better than a real life Gordon-Gekko.

So this is how it all started? Everything that has happened since in the stock photography industry has been a knee-jerk reaction. Race to the bottom pricing by Getty, bigger databases (SS circa 2018: We have the largest library!), lower standards, and now over million contributors and a whole heap of crapstock (using Pete's terminology, which I love!. lol) Supply goes up. Price goes down even further.

Thanks for posting the link - this is the first time in my 8 years here that I realised it all started with the Carlyle Group. Makes sense now. The agencies and the photographers have had no chance really. Thats how you kill off an industry - massive debt. Quite depressing really.

ETA. Quote from that link:

"The company’s net loss improved to $39 million last year, from a loss of $51 million the year before. However, after adjusting that number for costs including $125 million in interest expense and a $59 million hit from foreign exchange rates, the company said its profits would have been $269 million last year.

Getty has been weighed down by debt since its 2012 acquisition by The Carlyle Group. About $576 million of the expected $1.38 billion in cash from the SPAC deal will go toward paying down existing debt."

+100 Wonder if they will make a movie on this one? Maybe call it "Wolves on Stock"

OM · « **Reply #15 on:** December 13, 2021, 09:28 »

Quote from: Annie on December 12, 2021, 13:50

Quote from: rushay on December 11, 2021, 01:27
https://www.geekwire.com/2021/getty-images-to-become-public-company-again-in-4-8b-spac-deal-building-on-seattle-tech-roots/

Oh god, not the Carlyle Group :-(

..........The leading light in the darkest excesses of malignant capitalism.

offisapup · « **Reply #16 on:** December 13, 2021, 11:07 »

Quote from: For Real on December 13, 2021, 09:25

+100 Wonder if they will make a movie on this one? Maybe call it "Wolves on Stock"

It'll be kinda cool if they made it with all the footage we all uploaded to Getty...

H2O · « **Reply #17 on:** December 13, 2021, 11:41 »

Quote from: Annie on December 12, 2021, 13:50

Quote from: rushay on December 11, 2021, 01:27
https://www.geekwire.com/2021/getty-images-to-become-public-company-again-in-4-8b-spac-deal-building-on-seattle-tech-roots/

ETA. Quote from that link:

"The company’s net loss improved to $39 million last year, from a loss of $51 million the year before. However, after adjusting that number for costs including $125 million in interest expense and a $59 million hit from foreign exchange rates, the company said its profits would have been $269 million last year.

Getty has been weighed down by debt since its 2012 acquisition by The Carlyle Group. About $576 million of the expected $1.38 billion in cash from the SPAC deal will go toward paying down existing debt."

This basically sums up what has been happening to Getty, the wealthy asset strippers moved in and loaded the company with debt, so that the people hiding behind the name Carlyle Group could extract future profits, at the expense of the contributors.

The money paid to the Bankers in interest, is just a merry-go-round of debt, paid for by all the creative individuals in lower commissions, personally I would like to see a updated capitalist law in the Western World that empowers all the stake holders in these companies to have a vote on what happens to the money.

Milleflore · « **Reply #18 on:** December 13, 2021, 12:01 »

Quote from: For Real on December 13, 2021, 09:25

Quote from: Annie on December 12, 2021, 13:50
Quote from: rushay on December 11, 2021, 01:27
https://www.geekwire.com/2021/getty-images-to-become-public-company-again-in-4-8b-spac-deal-building-on-seattle-tech-roots/

Oh god, not the Carlyle Group :-(

Now it all makes sense. This is what they do to all the companies they 'invest' in. Rack up huge debt to buy in and then charge it back to the organisation who is then lumbered with massive debt for the rest of its life. They are no better than a real life Gordon-Gekko.

So this is how it all started? Everything that has happened since in the stock photography industry has been a knee-jerk reaction. Race to the bottom pricing by Getty, bigger databases (SS circa 2018: We have the largest library!), lower standards, and now over million contributors and a whole heap of crapstock (using Pete's terminology, which I love!. lol) Supply goes up. Price goes down even further.

Thanks for posting the link - this is the first time in my 8 years here that I realised it all started with the Carlyle Group. Makes sense now. The agencies and the photographers have had no chance really. Thats how you kill off an industry - massive debt. Quite depressing really.

ETA. Quote from that link:

"The company’s net loss improved to $39 million last year, from a loss of $51 million the year before. However, after adjusting that number for costs including $125 million in interest expense and a $59 million hit from foreign exchange rates, the company said its profits would have been $269 million last year.

Getty has been weighed down by debt since its 2012 acquisition by The Carlyle Group. About $576 million of the expected $1.38 billion in cash from the SPAC deal will go toward paying down existing debt."

+100 Wonder if they will make a movie on this one? Maybe call it "Wolves on Stock"

lol

Milleflore · « **Reply #19 on:** December 13, 2021, 12:16 »

Quote from: Uncle Pete on December 13, 2021, 09:04

Quote from: Annie on December 12, 2021, 13:50
Quote from: rushay on December 11, 2021, 01:27
https://www.geekwire.com/2021/getty-images-to-become-public-company-again-in-4-8b-spac-deal-building-on-seattle-tech-roots/

Oh god, not the Carlyle Group :-(

Now it all makes sense. This is what they do to all the companies they 'invest' in. Rack up huge debt to buy in and then charge it back to the organisation who is then lumbered with massive debt for the rest of its life. They are no better than a real life Gordon-Gekko.

So this is how it all started? Everything that has happened since in the stock photography industry has been a knee-jerk reaction. Race to the bottom pricing by Getty, bigger databases (SS circa 2018: We have the largest library!), lower standards, and now over million contributors and a whole heap of crapstock (using Pete's terminology, which I love!. lol) Supply goes up. Price goes down even further.

Thanks for posting the link - this is the first time in my 8 years here that I realised it all started with the Carlyle Group. Makes sense now. The agencies and the photographers have had no chance really. Thats how you kill off an industry - massive debt. Quite depressing really.

ETA. Quote from that link:

"The company’s net loss improved to $39 million last year, from a loss of $51 million the year before. However, after adjusting that number for costs including $125 million in interest expense and a $59 million hit from foreign exchange rates, the company said its profits would have been $269 million last year.

Getty has been weighed down by debt since its 2012 acquisition by The Carlyle Group. About $576 million of the expected $1.38 billion in cash from the SPAC deal will go toward paying down existing debt."

Yes, leaders of the industry who like the pied piper led it off photographers and their business into the woods.

“another milestone in the transformation of Getty Images.” So they are inferring this is a good thing?

I'm really excited to see they brought their losses down to only $39 million. Just like SS profits, while losing market, charging less and other downturns, I think most of us know where the new profits and adjustments came from? The artists cut gets smaller and smaller.

Coming from someone like you who understands business and accounting, I think you have it.

After I wrote that, I asked Nick, who is chartered and more up to date than I am on accounting standards, whether that sort of thing happens here, and he said, basically it can. (I know from back in the Enron days, accounting standards in Australia & Britain were more strict than in the USA. Not sure if things were tightened up after that scandal ??)

My argument is that the debt should be held by Carlyle's holding company and not the poor old company that's just been acquired. He agreed but one of the things that he said is that because stock exchanges have a lot of controls, and checks and balances, one of the things they often do is take the company off the stock exchange, so they have a lot more 'freedom' with all their murky transactions.

And that's exactly what happened with Getty!

Pixingphotos · « **Reply #20 on:** December 14, 2021, 14:51 »

Istock/Getty announced their contributor download targets for next year (5% raise). Giving less and gaining more, probably trying to be profitable before the IPO ...

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Author Topic: Getty Images to become public company again in $4.8B SPAC deal (Read 4793 times)

rushay

Level6

everest

Level6

H2O

Uncle Pete

flywing

Jo Ann Snover

Pixingphotos

For Real

Mimi the Cat

offisapup

Milleflore

Uncle Pete

For Real

OM

offisapup

H2O

Milleflore

Milleflore

Pixingphotos

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