TECH

Getty and Shutterstock announce $3.7B merger to dominate stock photos

Getty Images has agreed to purchase rival stock media provider Shutterstock as part of a cash and stock deal valued at approximately $3.7 billion. The combined company, which will be known as Getty Images Holdings, would emerge as one of the leading stock media outlets… that is, if regulators don't intervene.

Getty Images already works with more than half a million content creators around the globe and serves customers in nearly every country. The outlet, which also owns the iStock and Unsplash brands, covers over 160,000 news, sports, and entertainment events annually, and licenses its content to ad agencies, news organizations, documentary makers, and others.

Shutterstock, meanwhile, was founded in 2003 by Jon Oringer using 30,000 of his own photos. The company has continued to build its portfolio ever since through contributions from creative partners and acquisitions; as of September 30, 2024, the service had more than 530 million assets in its library.

Per the terms of the acquisition, Shutterstock shareholders can choose to receive one of the following for each share they own: $28.85 in cash, 13.67 shares of Getty Images common stock, or a mixed combo of 9.17 shares of Getty Images stock plus $9.50 in cash. Upon closing, Getty Images stockholders will own approximately 54.7 percent of the combined company while Shutterstock shareholders will own the remaining 45.3 percent.

Stock services like Getty Images and Shutterstock find themselves at a pivotal place in their journeys. While demand for stock media remains high thanks to our increasingly digital world, the emergence of AI-generated pictures, videos, and audio appears poised to throw a wrench into the mix. Some services, including Shutterstock, have signed licensing deals with AI companies to let them use their images for training purposes. Should that strategy continue, the stock media industry could look vastly different in the near future.

For now, the two companies will need to focus on obtaining regulatory approval for the merger, which could be tricky in given the current political climate.

The merger comes at a time when companies that use still images are facing increased competition from images generated by artificial intelligence.

The companies said Tuesday that they have complementary portfolios and that a merger will provide customers with a broader array still imagery, video, music, 3D and other media.

"With the rapid rise in demand for compelling visual content across industries, there has never been a better time for our two businesses to come together," Getty Images CEO Craig Peters said in a prepared statement.

Peters will serve as CEO of the combined business.

"We are excited by the opportunities we see to expand our creative content library and enhance our product offering to meet diverse customer needs," Shutterstock CEO Paul Hennessy said.

Shutterstock shareholders can choose to receive either approximately $28.85 per share in cash for each share of Shutterstock common stock they own; about 13.67 shares of Getty Images common stock for each share of Shutterstock common stock they own; or a mixed consideration of 9.17 shares of Getty Images common stock plus $9.50 in cash for each share of Shutterstock common stock they own.

The combined company will operate as Getty Images, and will continue to trade on the New York Stock Exchange under the 'GETY' ticker symbol.

Its board will have 11 members, comprised of Peters, six directors designated by Getty Images and four directors designated by Shutterstock, including Hennessy. The chairman will be Mark Getty, current chairman of Seattle-based Getty Images.

Shares of New York-based Shutterstock jumped more than 30% before the market opened, while Getty Images' stock soared more than 58%.

mundophone