Crestock Stock Photos Acquires Corbis for $625 million

PRLog (Press Release) – Apr 01, 2008 – Together, the two companies will meet a wider set of customer needs and have a significantly greater opportunity to grow into new markets, particularly in the microstock photography segment.

The acquisition has been driven by a Scandinavian group of investors as well as the Norwegian government fund organization: Innovation Norway. The move is also supported by the European Union's Media II Programme, whose purpose is to encourage the development and distribution of European audiovisual works.

Corbis was privately held by its Chairman, Bill Gates, who founded the company in 1989. Corbis offers a preeminent collection of more than 100 million creative, entertainment and historic images. Based in Seattle, Corbis serves more than 50 countries worldwide. The revenue for 2006 was $251 million.

Crestock, the world's northernmost stock photography agency, was founded in 2005 by CEO Geir Are Jensen, and is a leader in the microstock market segment; Internet based stock photography agencies that offers high quality imagery at highly competitive prices.

"This is a great day, not just for me and Crestock, but for the entire media industry of Norway and North Europe," Crestock CEO Jensen says. "Usually, promising companies in our countries are acquired by powerful US interests; this time it is the other way around, which is both rare and pleasing. My thanks today go out to the very cooperative and constructive management of Corbis, but most of all to Nicolas Santander, head of EU’s Media II Programme, who's been an extremely valuable partner in this process."

"This is a key strategic business decision for us," Corbis CEO Gary Shenk says, and continues: "The stock photography business of today is very different than in 1989, when our company was founded, not the least because of the growth in the microstock market segment, such as Crestock and SnapVillage."

Creative Visual Group AS began negotiations with Corbis in August 2007, with the intention of a partnership between Corbis' microstock company, SnapVillage and Crestock. After several meetings in Oslo, Norway and Seattle, USA, it became clear that Crestock’s rapid growth and innovation would be enhanced by the foundation created by Corbis .

The two companies are developing integration plans that build on the cultural similarities and the best business and product development practices from each company. The companies will make additional details and information about the acquisition available at http://www.crestock.com/news/crestock-stock-photos-acqui ... on an ongoing basis.

"Corbis and Veer will continue to operate as separate brands, while SnapVillage, Corbis' 2007 attempt at entering the micro payment stock photography market, will be merged with the Crestock brand. The office in Seattle will remain, but a new head quarter will be established in Europe, most likely in London or in Paris", Crestock CEO Jensen says.

Gary Shenk will still lead the Corbis activities, and is positive to his new partner; "When I think of Norway, I think of pure and clean. That's how Crestock is too; it's simply 'non stocky stock photography', it will be very exciting to see how we can continue to grow the combined customer base of Crestock and Corbis."

Forward Looking Statements

This press release includes "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995.  Words such as "expect, "estimate," "project," "budget," "forecast," "anticipate," "intend," "plan," "may," "will," "could," "should," "believes," "predicts," "potential," "continue," and similar expressions are intended to identify such forward-looking statements.  

Forward-looking statements in this press release include, without limitation, forecasts of market growth, future revenue, benefits of the proposed merger, expectations that the merger will be accretive to Crestock's results, future expectations concerning available cash and cash equivalents, Crestock’s expectations with respect to future stock repurchases following the merger, including the timing and amount of such repurchases, and other matters that involve known and unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release.

Such risk factors include, among others: difficulties encountered in integrating merged businesses; uncertainties as to the timing of the merger; approval of the transaction by the stockholders of the companies; the satisfaction of closing conditions to the transaction, including the receipt of regulatory approvals; whether certain market segments grow as anticipated; the competitive environment in the software industry and competitive responses to the proposed merger; and whether the companies can successfully develop new products and the degree to which these gain market acceptance. Actual results may differ materially from those contained in the forward-looking statements in this press release. Additional information concerning these and other risk factors is contained in Crestock's and Corbis's most recently filed Forms 10-K and 10-Q.