The merger comes at a time when companies that use still images are facing increased competition from images generated by artificial intelligence.
NEW YORK — Getty Images is buying Shutterstock to create a $3.7 billion visual content company.
The merger comes at a time when companies that use still images are facing increased competition from images generated by artificial intelligence.
The companies announced on Tuesday that they possess complementary portfolios and that through a merger, customers will have access to a wider range of visual content, including still imagery, video, music, 3D, and other media.
Getty Images CEO Craig Peters mentioned in a statement that the growing demand for engaging visual content across various sectors presents an ideal opportunity for the two businesses to unite.
Peters will serve as CEO of the combined business.
Shutterstock CEO Paul Hennessy expressed enthusiasm about the potential to grow their creative content library and improve their product range to cater to a greater variety of customer requirements.
Getty Images shareholders will own about 54.7% of the combined company at closing and Shutterstock stockholders will own approximately 45.3%.
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%.
