Getty bid deadline passes, at least one offer: source
NEW YORK (Reuters) - Getty Images Inc GYI.N, the world's biggest picture and video supplier to media and advertising companies, received at least one takeover offer when bids were due on Monday, a source briefed on the situation said.
Getty, valued at about $1.6 billion, confirmed on January 22 that it was studying several strategic options and had hired investment bank Goldman Sachs (GS.N). A potential sale had been rumored for months with interest from private equity.
A separate source said it was unclear how firm any offers were or whether they were for the whole or parts of Getty.
A spokeswoman for Getty said she could not comment beyond the company's last statement.
Shares of Getty have been hit over the last year by disappointing earnings and a slowdown at its core rights-managed pictures business. It trades at 12 times estimated 2008 results, while rival Jupitermedia JUPM.O trades at 36 times analysts' 2008 forecasts.
Digital photography companies have seen competition in the royalty-free photography business from discount Web sites offering pictures.
The company posted a lower quarterly profit last week, citing pressure from discount stock photo providers.
In an interview with Reuters when it announced earnings, Getty Chief Executive Jonathan Klein said the company's decision to look into strategic alternatives was the result of undervalued Getty shares and not a by-product of its struggles.
"We have not said anything about what those alternatives may be," said Klein in that interview. "It is our obligation as a board to look at the different alternatives to drive shareholder value when you generate as much cash as we do."
(Reporting by Megan Davies, editing by Richard Chang)
