NEW YORK (AP) — Getty Images announced on Tuesday its plan to acquire Shutterstock in a deal valued at $3.7 billion, forming a formidable visual content company in the face of growing competition from artificial intelligence-generated images. The strategic merger aims to combine the strengths of both companies to offer customers a wider range of visual content including still imagery, video, music, 3D assets, and other media.
“As the demand for high-quality visual content continues to surge across various industries, the timing is perfect for our two entities to unite forces,” stated Getty Images CEO Craig Peters in a press release. Peters is set to assume the role of CEO for the newly merged company, emphasizing the synergies between their respective portfolios.
Shutterstock CEO Paul Hennessy echoed Peters’ sentiments, expressing enthusiasm for the growth opportunities that lie ahead through the expansion of their creative content library and the enhancement of their product offerings to better cater to diverse customer needs.
Upon the completion of the transaction, Getty Images shareholders are expected to hold a majority stake of approximately 54.7% in the combined company, while Shutterstock stockholders will retain an ownership interest of around 45.3%. Shareholders of Shutterstock will have the option to receive compensation in the form of cash at a rate of roughly $28.85 per share, an exchange of about 13.67 shares of Getty Images common stock per share of Shutterstock common stock, or a combination of 9.17 shares of Getty Images common stock and $9.50 in cash per share of Shutterstock common stock.
The merged entity will operate under the name Getty Images and will remain listed on the New York Stock Exchange with the ticker symbol ‘GETY’. The board of directors will consist of 11 members, including Peters, six directors designated by Getty Images, and four directors appointed by Shutterstock, with Hennessy among the latter group. Mark Getty, the current chairman of Seattle-headquartered Getty Images, will serve as the chairman of the combined company.
Following the announcement, shares of Shutterstock, based in New York, surged by over 30% in pre-market trading, while Getty Images’ stock experienced a substantial increase of more than 58%.
The transaction signals a significant move within the visual content industry, with both companies positioning themselves to capitalize on the growing demand for captivating visual assets in an increasingly digital world driven by visual communication. By leveraging their collective resources and expertise, Getty Images and Shutterstock are poised to shape the future landscape of visual content creation and distribution, solidifying their position as key players in the ever-evolving media ecosystem.
