Getty Images announced on Tuesday its merger with Shutterstock, forming a $3.7 billion (€3.6 billion) visual content powerhouse. The merger comes at a pivotal time, as artificial intelligence (AI) reshapes the image market.
Details of the Acquisition
Getty will acquire Shutterstock for $28.85 (€28) per share, equivalent to 13.67 Getty shares for each Shutterstock share. Alternatively, Shutterstock shareholders can choose a mix of cash and Getty shares.
After the deal, Getty shareholders will own approximately 54.7% of the combined company, while Shutterstock stockholders will control the remaining 45.3%. Getty will pay $331 million (€321 million) in cash and issue 319.4 million of its shares.
Addressing a Changing Market
The merger arrives as AI-generated imagery is rapidly changing the visual content landscape. Both companies believe their complementary portfolios will offer a more diverse range of media, including still images, video, music, 3D content, and more.
Getty Images CEO Craig Peters, who will lead the combined business, said, “With the surge in demand for high-quality visual content, this is the perfect time for our companies to unite.”
Shutterstock CEO Paul Hennessy also expressed excitement, stating the merger would allow them to expand their creative content library and enhance their products to meet customer needs.
The merged company will continue under the Getty Images brand and will trade on the New York Stock Exchange with the ticker symbol ‘GETY.’ The new board will include 11 members, including Peters, Hennessy, and Mark Getty, who will serve as chairman.
Potential Antitrust Challenges
The merger could face antitrust scrutiny because of both companies’ dominant positions in the visual content market. Analysts suggest this deal may provide insight into how the Trump administration will approach large-scale industry consolidations.
While the Biden administration previously blocked several high-profile mergers, speculation grows that the Trump administration might take a more lenient stance, allowing more such deals to proceed.