Getty Images, a provider of a library of visual content for commercial and editorial use, announced that it has agreed to merge with rival digital content platform Shutterstock. The combined company would be valued at $3.7 billion as of yesterday’s close.
Both companies offer a wide range of stock content, including high-quality licensed photos, videos, music and 3D models. The platforms, which offer high-quality content across a wide range of categories such as news, sports, entertainment, fashion, nature, architecture and history, are popular with users in the media, advertising and publishing sectors.
Under the agreement, Getty Images shareholders will own approximately 54.7% of the combined company, while Shutterstock shareholders will own approximately 45.3%. Shutterstock shareholders will be offered the option of a cash payment of $28.80 per share, 13.67 Getty Images shares or a combination of both.
Shutterstock has seen its revenue plummet in recent years as it has leveraged artificial intelligence to help produce content. The company, which trades on the New York Stock Exchange (NYSE) under the ticker symbol SSTK, has lost 50% of its value since 2022.
The combined company will operate under the name Getty Images after the deal, which is subject to regulatory approval, is expected to close. Craig Peters, Getty Images’ current CEO, will continue as CEO.
In a statement about the deal, Craig Peters said:
“Today’s announcement is an exciting and transformative step for our companies. This agreement will strengthen our financial base and create multiple opportunities to invest in the future. This includes developing our content offerings, expanding our event reach, and introducing new technologies to better serve our customers.”
