The two leading stock image companies join forces to face the challenges of the artificial intelligence market and competition.
In a strategic move that redefines the landscape of the visual content industry, Getty Images and Shutterstock have agreed to merge in a deal valued at approximately $3.7 billion.. This union, presented as a “merger of equals”, will give rise to a new firm called Getty Images Holdings, Inc., which will be listed on the New York Stock Exchange under the symbol GETY.
Under the terms of the agreement, the shareholders of Getty Images will own about 54.7% of the combined company, while Shutterstock will own about 45.3%. Shutterstock shareholders will be able to choose to receive cash, Getty stock, or a combination of the two for their shares.
Craig Peters, current CEO of Getty Images, will assume leadership of the new combined entity, while Paul Hennessy, CEO of Shutterstock, will serve on the board along with other members of both companies.
The merger comes as the visual content industry faces significant challenges, especially due to the rise of generative artificial intelligence tools. that allow the creation of images without the need for traditional photographs. Both companies have taken steps to adapt to this trend: Getty Images launched its own image generator and established a partnership with Picsart, while Shutterstock signed AI training deals with companies such as OpenAI, Meta, Google and Amazon.
The new entity will seek to expand its content offering, including still images, videos, music and 3D media, with the aim of providing its clients with a broader range of creative resources. Besides, The combination of resources is expected to allow for greater investment in technology and contentstrengthening its position in the market and improving its ability to compete in an environment increasingly dominated by artificial intelligence
The merger is subject to approval by regulatory authorities.which will evaluate the impact of this consolidation on market competition, both in the traditional sale of images and in new business models driven by artificial intelligence. The transaction is anticipated to be completed in the coming months, once the necessary authorizations have been obtained.
After the announcement of the merger, The shares of both companies experienced significant increases. Shutterstock shares rose more than 30%, while Getty Images rose more than 58%%, reflecting market confidence in the prospects of the new combined entity.
According to analysts, This merger represents a milestone in the visual content industry, creating a company with annual revenues close to US$2 billion and a strengthened position to face the challenges and opportunities presented by technological evolution and the changing demands of the global market.
Source: Ambito
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