Getty Images and Shutterstock plan to merge into a $3.7 billion company
Getty Images and Shutterstock plan to merge into a $3.7 billion company. The two leading providers of images and visual content want to join forces. However, the deal is not yet final as it requires antitrust approval.
Image giants join forces
The world of visual content is about to change: Getty Images and Shutterstock, two of the best-known and biggest names in the stock photo and video industry, have announced their merger. The new company will operate under the name Getty Images and will become a heavyweight in the visual media sector with an estimated enterprise value of $3.7 billion.
The merger of the two companies promises an extensive pooling of resources. Getty Images, known for its extensive library of high-quality images and editorial content, complements Shutterstock’s large, searchable platform, which also allows photographers and graphic artists to upload their own content.
Details of the deal
How Bloomberg reports, the deal will be structured to give Shutterstock shareholders a choice of compensation options. You can either receive about $28.85 in cash, about 13.67 Getty Images shares for each Shutterstock share, or a mix of both. Upon completion of the transaction, existing Getty Images shareholders will own approximately 54.7 percent of the combined company, while Shutterstock shareholders will own the remaining 45.3 percent.
The two companies expect significant synergy effects, but also staff cuts: savings of between 150 and 200 million dollars are expected in the first three years after the merger, with around two thirds of this expected to be realized in the first twelve to 24 months. These efficiencies will allow the new company to invest more in innovation, particularly in areas such as artificial intelligence, 3D imaging and advanced search capabilities. Craig Peters, the current CEO of Getty Images, will also assume leadership of the combined company. In a statement, he emphasized the opportunities presented by the merger:
With demand for compelling visual content rapidly increasing across industries, there has never been a better time for our two companies to join forces. Craig Peters, CEO of Getty Images
Despite the positive outlook, the new company faces challenges. The visual content industry is undergoing profound change, not least due to the influence of artificial intelligence and the increasing prevalence of high-quality smartphone cameras.
Impact on the industry
Experts believe the merger could have far-reaching consequences for the entire industry: smaller providers and independent photographers could find themselves exposed to increased competitive pressure. The combined innovative power of the new company could lead to accelerated technological developments in the field of visual media. Finally, market concentration could also have an impact on pricing and licensing models.
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