Getty Images and Shutterstock to Merge in $3.7 Billion Deal
Getty Images and Shutterstock will merge into one company valued at $3.7 billion in a deal that aims to take on competition from AI, the companies announced on Tuesday. The new premier visual content company will be called Getty Images Holdings, Inc. and at close, Getty Images’s CEO, Craig Peters, will serve as CEO of the combined company.
The new company aims to offer a larger content library, expanded opportunities for its contributor community and a reinforced commitment to “the adoption of inclusive and representative content,” but the deal also aims to create a “stronger financial profile” and innovation for customers in “a fast‑evolving and highly competitive environment,” a nod to the growing AI threat on both of their businesses.
The launch of AI-driven programs like Canva have dramatically increased competition for Getty and Shutterstock, which both provide a bevy of stock photos that can increasingly be created — to the user’s specification — by AI.
The combined company will increase investment in tech innovation, including generative AI.
“Today’s announcement is exciting and transformational for our companies, unlocking multiple opportunities to strengthen our financial foundation and invest in the future—including enhancing our content offerings, expanding event coverage, and delivering new technologies to better serve our customers,” said Craig Peters, CEO, Getty Images. “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. By combining our complementary strengths, we can better address customer opportunities while delivering exceptional value to our partners, contributors, and stockholders.”
“We are excited by the opportunities we see to expand our creative content library and enhance our product offering to meet diverse customer needs,” said Paul Hennessy, CEO, Shutterstock. “We expect the merger to produce value for the customers and stockholders of both companies by capitalizing on attractive growth opportunities to drive combined revenues, accelerating product innovation, realizing significant cost synergies and improving cash flow. We look forward to working closely with the Getty Images management team to complete the transaction and drive the next chapter of growth.”
The merger is subject to regulatory approvals, the approval of Getty Images and Shutterstock stockholders and the extension or refinancing of Getty Images’ existing debt obligations.
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