NEW YORK — Getty Images has announced the acquisition of Shutterstock, leading to the formation of a visual content powerhouse valued at $3.7 billion.
This strategic merger is occurring amidst an evolving landscape where businesses utilizing still visuals are encountering stiff competition from imagery produced by artificial intelligence.
In a joint statement, both companies highlighted that their respective portfolios are complementary, ensuring that the merged entity can offer a wider range of still images, video content, music, 3D graphics, and other media.
Getty Images’ CEO, Craig Peters, expressed enthusiasm about the merger, stating, “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.”
Peters will assume the role of CEO for the newly formed company.
Shutterstock’s CEO, Paul Hennessy, also voiced his excitement, stating, “We are excited by the opportunities we see to expand our creative content library and enhance our product offering to meet diverse customer needs.”
Upon the merger’s completion, shareholders of Getty Images will hold approximately 54.7% of the merged entity, while Shutterstock shareholders will possess close to 45.3%.
Shutterstock stockholders will have the option to receive about $28.85 in cash for each share of Shutterstock common stock, or they can choose to take roughly 13.67 shares of Getty Images common stock in exchange for each share of Shutterstock. There is also an alternative option available offering a combination of 9.17 shares of Getty Images stock plus $9.50 in cash for each Shutterstock share.
Post-merger, the unified company will work under the Getty Images name and will continue to be publicly traded on the New York Stock Exchange under the ticker symbol ‘GETY’.
The board of the new company will consist of 11 members. This includes Peters, six directors chosen by Getty Images, and four directors selected by Shutterstock, among whom will be Hennessy. Mark Getty, the current chairman of Seattle-based Getty Images, will act as the chairman of the merged firm.
Following the announcement, shares of Shutterstock surged by over 30% prior to the market opening, while shares of Getty Images experienced a remarkable increase of more than 58%.
