In a move that would probably come under antitrust scrutiny, Getty Images said on Tuesday that it would combine with rival Shutterstock to form a $3.7 billion stock image powerhouse designed for the artificial intelligence era.
The decision was made at a time when generative AI tools like Midjourney and OpenAI’s DALL-E, which can produce images and video in response to a user’s basic language input, are posing a challenge to the licensed visual content sector.
According to the agreement, shareholders of Shutterstock would either receive $28.80 in cash per share, 13.67 shares of Getty Images, or 9.17 shares of Getty and $9.50 in cash for each Shutterstock share they own.
Premarket trading saw a 26.5% increase in Shutterstock’s shares and a 50.2% increase in Getty Images’. As the demand for stock photography declines due to the growing use of mobile cameras, the stocks of both companies have been declining for at least the last four years.
According to Craig Peters, CEO of Getty Images, the agreement will assist the businesses in improving their content offerings, increasing event coverage, and introducing new technology.
Approximately 54.7% of the combined business will be owned by Getty Images investors, with the remaining portion going to Shutterstock stockholders. Peters will be the CEO of the combined company.
When it comes to supplying images and videos for editorial use, Getty has competition from Reuters and the Associated Press.
By the third year of the combined firm, the deal is anticipated to result in annual cost savings of $150 million to $200 million.
It will continue to trade on the New York Stock Exchange with the ticker sign GETY and be renamed Getty Images Holdings.
Note: Every piece of content is rigorously reviewed by our team of experienced writers and editors to ensure its accuracy. Our writers use credible sources and adhere to strict fact-checking protocols to verify all claims and data before publication. If an error is identified, we promptly correct it and strive for transparency in all updates, feel free to reach out to us via email. We appreciate your trust and support!