Trillium Capital on Monday made a non-binding offer to buy Getty Images Holding (NYSE: GETY) for $10 per share in cash.
The principals of Trillium Capital possess over 500,000 shares of Getty’s common stock and common stock equivalents. Earlier this month, the firm requested that its Managing Partner, Scott Murray, join the Board of Directors of Getty.
The company believes that Getty has more than $1 billion in untapped value and that the stock should trade above $12 per share. Murray is said to be a big supporter of Getty launching a strategic review process to locate a possible purchaser.
Following the news, Getty’s shares skyrocketed by more than 60% on pre-market trading, currently trading beyond $8 per share from its Friday closing price of $5.06 per share.
The push for Murray was followed by Trillium Capital’s “path to revenue growth for Getty,” highlighting initiatives in unlocking said untapped revenue potential. The proposal includes expanding a partnership with Nvidia, partnering with Microsoft and Bing through their Open API system, building a metadata relationship with Facebook and Instagram, and partnering with publications such as National Geographic, People Magazine, New York Times, and The Washington Post, to upload and download digital libraries.
“Stewardship of a public company is an important responsibility for a board. This includes things such as selecting the right executive team, working with management to define the strategic path, building a sustainable and growing franchise and most of all creating value for all stakeholders,” Trillium Capital said in a statement.
“We may consider permitting the holders of the large block of shares of Getty (The Getty Family, Koch Industries and Neuberger Berman) who own over 80% of the shares outstanding to roll some or all their shares into our transaction,” the company said of its proposal bid.
Should the transaction pursue, Murray is expected to join Getty’s board as chairman. However, the proposal is still yet to be engaged by Getty in a non-disclosure agreement.
In Q4 2022, Getty posted $231.5 million in revenue, down 3.2% year over year. It also recorded a net loss of $23.3 million compared to a net income of $41.5 million in Q4 2021.
For the full year, the image bank company posted $926.2 million in revenue, up 0.8% from 2021. But it recorded a net loss of $77.6 million compared to net income of $117.4 million in the previous year.
Ending cash balance as of December 31, 2022 was $97.9 million while total debt was $1.434 billion. For 2023, the firm is guiding its revenue to land between $936 million to $963 million.
Information for this briefing was found via Edgar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.