Getty Images and Shutterstock announce merger
Getty Images and Shutterstock have agreed to merge in a $3.7bn (£2.9bn) deal, forming a combined entity under the name Getty Images Holdings, geared to monopolise the stock image market for creative, media, and advertising industries.
The merger was announced on Tuesday, and is expected to close following regulatory and shareholder approvals.
The merger is expected to deliver $150m (£199m) to $200m (£159m) in annual cost synergies within three years, and to be accretive to earnings and cash flow by year two.
Getty chief executive Craig Peters stated that this deal will enhance “content offerings, expand event coverage, and deliver new technologies”.
The announcement sent both companies’ shares surging, reflecting optimism about the deal’s potential value with Getty Images closing the day at $9.76 (£7.79) up 50.2 per cent, while Shutterstock finished at $70.13 (£55.96), up 26.5 per cent.
Under the terms of the agreement, Shutterstock shareholders will have three options; to receive 13.67 shares of Getty Images stock, $28.90 (£23.06) per share in cash, or both 9.18 Getty shares and $9.50 (£7.58) in cash for each Shutterstock share they own.
Getty pledged, along with Shutterstock, to deliver cost savings, boost content offerings, and expand innovation in the AI age.
This announcement follows a challenging period for the two companies in recent years due to declining demand for traditional stock photography, driven by the widespread use of phone cameras.
The merger poses a solution to those challenges, enabling the new group to leverage its combined resources to invest in AI technologies and diversify content.
Getty Images Holdings will fortify both firms, which will likely increase investment in innovative products and AI-driven solutions as demand for dynamic and adaptive visual content grows.