Getty Images (GETY) announced on Tuesday that it will merge with its rival, Shutterstock (SSTK), to create a single, premier visual content company worth approximately $3.7 billion.
The merged company will operate under the name “Getty Images Holdings, Inc.” and remain listed on the New York Stock Exchange (NYSE) under the ticker symbol “GETY.”
As a combined company, Getty Images and Shutterstock will be able to expand their stock photo libraries and better compete with the rising challenge posed by AI-powered image creation tools.
They plan to offer a more extensive and diverse content library to benefit their customers, create greater opportunities for their contributor community, and strengthen their dedication to promoting inclusive and representative content.
On the financial front, the merged company will be well positioned to invest in innovative content creation, expanded event coverage, and customer facing technologies and capabilities such as search, 3D imagery, and generative AI.
It will also give content creators substantially greater opportunities to reach customers worldwide.
“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 in a news release.
“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 Shutterstock CEO Paul Hennessy.
“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.”
Within three years of combining operations, the company expects to realize cost synergies ranging from $150 million to $200 million.
Upon the completion of the merger, Craig Peters, CEO of Getty Images, will take on the CEO role for the combined company.
The new entity will be governed by an eleven-member Board of Directors, including Craig Peters, six directors appointed by Getty Images, and four directors appointed by Shutterstock, including Paul Hennessy, Shutterstock’s CEO.
Further, Mark Getty, the current Chairman of Getty Images, will serve as the Chairman of the Board for the combined company.
Additionally, a Getty Images spokesperson confirmed to The Verge that Shutterstock will continue to operate as a separate website after the merger.
