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Author Topic: Shutterstock has a new CEO, Paul Hennessy  (Read 1555 times)

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« on: May 11, 2022, 09:30 »
+5
https://investor.shutterstock.com/news-releases/news-release-details/shutterstock-appoints-paul-hennessy-chief-executive-officer

Experience with a used car marketplace and Priceline don't suggest any sort of return to the roots of a platform for the creative professional :)

Vroom announced its new CEO today as they "realign" their business

https://www.autoremarketing.com/retail/vroom-names-new-ceo

He is still listed as Vroom CEO on his LinkedIn page - I guess this was all very last minute

https://www.linkedin.com/in/paulhennessy1/

And Vroom needs a turnaround plan after Hennessy's turn as CEO?

https://www.barrons.com/articles/vroom-vrm-stock-earnings-ceo-turnaround-plan-51652197593

From the Barron's article:

"For fiscal 2022, Vroom is expecting e-commerce unit sales of 45,000 to 55,000, with an adjusted Ebitda loss, or earnings before interest, taxes, depreciation, and amortization, of between $375 million to $325 million. . . . Over the last 12 months, Vroom has lost 96% of its value, losing 88% this year alone. . . . Vroom said on Tuesday it would begin to implement a business realignment plan to turn things around. The plan prioritizes unit economics, reducing operating expenses, and maximizing liquidity. Jobs cuts are included. Management expects to achieve approximately $135 million to $165 million of cost reductions and operating improvements throughout 2022.. . . The company still needs to navigate a host of risks, including its limited operating history and lack of profitability"

So far (early in the trading day) investors aren't over the moon about the combination of the new CEO and Pond5 acquisition. Stock is slightly down from Tuesday's closing price (which was $64.23)

The Nasdaq was down today, but even so, investors didn't greet the new CEO and Pond5 acquisition with enthusiasm. SSTK closed at $62.15, down $2.08

The acquisition of Pond5 is for $210 in cash (press release). In the Q1 reports on Shutterstock's earnings, they said they had $163 million of free cash flow (charts on the investor micro site) and their "Ending Cash" for the quarter was $258 million. I don't know enough about this type of accounting to be sure, but it looks as if the bulk of their cash hoard is getting spent on Pond5.  Mr. Hennessy will have many plates to keep spinning in his new job...
« Last Edit: May 11, 2022, 15:31 by Jo Ann Snover »


« Reply #1 on: May 11, 2022, 09:55 »
+6
This one will come with a newer idea never tried before and that will path the success of contributors and stock holders. Cut prices 20% and royalties 50% . He swears that with his brilliant new idea all contributors will make it up in volume.

Bunch of scavengers. Now time to rip apart P5 contributors unfortunately.

https://investor.shutterstock.com/news-releases/news-release-details/shutterstock-appoints-paul-hennessy-chief-executive-officer

Experience with a used car marketplace and Priceline don't suggest any sort of return to the roots of a platform for the creative professional :)

Vroom announced its new CEO today as they "realign" their business

https://www.autoremarketing.com/retail/vroom-names-new-ceo

He is still listed as Vroom CEO on his LinkedIn page - I guess this was all very last minute

https://www.linkedin.com/in/paulhennessy1/

And Vroom needs a turnaround plan after Hennessy's turn as CEO?

https://www.barrons.com/articles/vroom-vrm-stock-earnings-ceo-turnaround-plan-51652197593

« Reply #2 on: May 11, 2022, 11:49 »
+2
I wonder what the story is here. Looks more and more like Stan had to leave very quickly/ unexpectedly for whatever reason.

« Reply #3 on: May 11, 2022, 11:53 »
+1
Whelp, take a look at Vroom's share price over the last few years. Ouch.

EDIT: And saw a boost when the CEO stepped down yesterday to move to...SS

https://finance.yahoo.com/m/fc50bb38-ce62-39a9-88a4-21a1bd539720/vroom-stock-races-ahead-after.html

« Last Edit: May 11, 2022, 11:57 by Justanotherphotographer »

« Reply #4 on: May 11, 2022, 12:49 »
0
Whelp, take a look at Vroom's share price over the last few years. Ouch.

EDIT: And saw a boost when the CEO stepped down yesterday to move to...SS

https://finance.yahoo.com/m/fc50bb38-ce62-39a9-88a4-21a1bd539720/vroom-stock-races-ahead-after.html

I don't mind the share price tanking if the guy works for contributors more than shareholders! (Not going to happen I know but still we can dream...)

« Reply #5 on: May 11, 2022, 13:04 »
+1
God they're taking over pond5. Have some videos on there but never sold any - I might now probably for chump change if new CEO's anything like Stan the man.

« Reply #6 on: May 11, 2022, 13:23 »
+1
I wonder what the story is here. Looks more and more like Stan had to leave very quickly/ unexpectedly for whatever reason.
Stan obviously worked on the P5 deal before his departure. Maybe his departure is even part of the P5 deal. Such things happen during important mergers/acquisitions.

« Reply #7 on: May 11, 2022, 15:42 »
+6
Knowing shutterstock... It's hard to be optimistic about this.

« Reply #8 on: May 11, 2022, 16:54 »
+4
Holy cow! I'm gone for a few days and look what's happened.  A used car/discounted pharmacy guy (expert in ... discounting???) takes over Shutterstock and Shutterstock takes over Pond 5.

It's definitely the other side of the bell curve!

https://www.microstockgroup.com/general-big-6/my-first-month-with-freepik-!/msg575985/#msg575985

Quote

I keep being reminded of a economics model where a new industry with lots of potential starts out and all goes very well for awhile because demand exceeds supply. However, as more and more suppliers start to join in to make a quick buck, or cash in on those profits, eventually supply far exceeds demand. This is where we are at the moment. The bottom far end of the bell curve.

What happens next is that there are usually the same suppliers (both agencies and contributors, in this regard) still trying to hold on, and fighting and squabbling over what profits remain, but unless they diversify or provide a better product (not necessarily a cheaper one), most will eventually be gone in a year or so. The model usually predicts that in the end, the market is finally taken over by only a small number of suppliers who outperform everyone else.



A little song for today lol


Shutterstock Killed the Video Star ...

https://youtu.be/IUgF49Rtg7Q




« Last Edit: May 11, 2022, 17:29 by Annie »

« Reply #9 on: May 11, 2022, 22:23 »
0
.duplicate
« Last Edit: May 12, 2022, 02:58 by cobalt »

« Reply #10 on: May 12, 2022, 02:52 »
0
He has been on the SS board for a few years, so he probably has some basic understanding of the company.

But looking at the vroom share price I doubt this choice will make investors happy. 96% drop in one year? Ouch!

I just hope pond5 is run as a separate business for as long as possible.

But I guess I must make a much bigger effort with Adobe, sadly they dont take editorial video.

OM

« Reply #11 on: May 13, 2022, 03:50 »
+2
At Vroom he seems to have been adept at spending money which the company didn't have! Hence the huge loss in stock price. Difficult to see how his appointment would benefit SS as a company......unless he were to suggest spending money on contributors to entice quality producers back into SS! ..........Nah....never going to happen. This is the world of the corporate kleptocrats.........stash the cash as fast as you can and when it all goes pear-shaped, move on.

« Reply #12 on: May 13, 2022, 08:51 »
+7
It's silly to think that SS acquisition of P5 will not result in royalty reductions on the P5 platform. SS is a publicly traded company and therefore their responsibility is to increase shareholder wealth.  They will claw back royalties on P5 just like they did at SS. Just a matter of time, and probably this year.  They know that milking contributors further on SS will not get them the level of return they need to drive up share prices.  So now, they have a WHOLE NEW SHINY WIDGET with a lot of royalty reduction upside to do that with.   


 

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