“Visual Giants Unite: Getty Images and Shutterstock Ink a $3.7 Billion Merger”

Getty Images Holdings, Inc. and Shutterstock, the two largest licensed visual content firms globally, have unveiled plans to merge, forming a ‘leading visual content enterprise.’

The newly formed entity, which would hold an estimated value of around $3.7 billion USD ($5.93b AUD), will be called Getty Images Holdings, Inc.

In a press announcement, Getty Images and Shutterstock stated that the merger will enable them to provide a content library with enhanced depth and breadth, benefitting customers, alongside increased opportunities for contributors and a reinforced dedication to promoting inclusive and representative content.

Additionally, the stronger financial profile of the merged entity is anticipated to yield improved capacity for product innovation and investment.

Following the announcement, Shutterstock’s shares surged by 26.5% during premarket trading, while Getty Images experienced a rise of 50.2%. The stock prices of both companies have been declining for several years.
 
“Today’s announcement is thrilling and transformative for our organizations, unlocking numerous opportunities to bolster our financial foundation and invest in the future—including enhancing our content offerings, broadening event coverage, and delivering advanced technologies to better cater to our clients,” stated Craig Peters, CEO of Getty Images.

“By merging our complementary strengths, we can more effectively seize customer opportunities while providing exceptional value to our partners, contributors, and shareholders,” he added.

Peters will continue as the CEO of the unified company. Shareholders of Getty Images will possess approximately 54.7% of the new entity, while Shutterstock stockholders will retain the remainder.

As per the companies, the agreement is projected to generate annual cost savings ranging from $150 million to $200 million by the third year.

In a message to Getty contributors obtained by Australian Photography, Peters aimed to reassure the contributor community.

“We are pursuing this merger primarily because we anticipate it will bring broader exposure for your content, support for new asset types and formats, and improved support and tools to manage your work.

“We believe in the potential of AI, but [also] the necessity to compensate creators for the utilization of their work. These principles will remain unchanged through this transaction,” he expressed.

Once the merger finalizes, the new firm will continue to be listed on the New York Stock Exchange under the ticker symbol “GETY”.