On January 7, Getty Images and Shutterstock announced a definitive merger of equal transaction, to create a premiere visual content company. Both image companies are gearing up to tackle the AI challenge in stock images. The merger will create a combined company with an enterprise value of $3.7 billion. The combined company will be named Getty Image Holding, Inc., which will continue to trade on the New York Stock Exchange as “GETY.”
Craig Peters, Getty Images CEO said, “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.”
Paul Hennessey, Shutterstock CEO said, “We are excited by the opportunities we see to expand our creative content library and enhance our product offering to meet diverse customer needs.”
Getty and Shutterstock $37B Merger
Getty and Shutterstock will merge to create a large media company, Getty Image Hoding Inc. The combined company will offer a content library with advanced features that will benefit customers. It will provide extended opportunities for its contributor communities and a strengthened dedication to promoting inclusive and representative content.
Additionally, the combined company’s stronger financial position is expected to boost its ability to invest in products and drive innovation for customers in a rapidly changing, competitive market. Getty Images stockholders will own almost 54.7% of stakes and Shutterstock stockholders will have 45.3% stakes in Getty Images Holding, Inc.
How will Getty Image Holdings, Inc. Function?
Craig Peters, CEO of Getty Images will also serve as the CEO of the new combined company. The company will have eleven directors on the board of members. The board includes Getty Images CEO Craig Peters, six directors from Getty Images, and four directors from Shutterstock, including Shutterstock CEO Paul Hennessy.
Mark Getty is the chairman of Getty Images and will also serve as chairman of the board of directors at the combined company. As per the agreement, which was approved by the board of directors of both companies, when the deal closes, Shutterstock stockholders can choose from the following options:
- $28.84870 per share in cash for each share of Shutterstock common stock they own;
- 13.67237 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.
Shutterstock and Getty Stock Soars
After the news of the merger, both the company’s stocks jumped at high prices. Getty stock surged by 24% and Shutterstock share prices rose by 20% on the afternoon of Tuesday trading. However, both companies were facing a prolonged slump as Getty stocks were down more than 90% and Shutterstock share prices were off more than 75% from their peak in 2021.
