Getty Images And Shutterstock Announce Merger To Form New Visual Content Entity

A picture speaks a thousand words.

This phrase holds true, especially for advertisers, marketers, graphic designers, and many content creators.

The key to gathering attention is ensuring good visuals. However, good visuals come at a cost, which sometimes is too high if photography is involved. Creators can’t conduct a photoshoot each time they need a striking image, right?

This is where stock photography comes into play. Stock asset companies open their doors to professional (and sometimes amateur) photographers, who upload their photos for others to use. In turn, the stock asset website provides them with royalties or a one-time payment each time someone uses their photos. This works for videos, music, sounds, 3D images, AI-generated images, and more.

Everybody wins!

Now, two of the most prominent stock photography, footage, music, and more have come out with an announcement that’s set to send shockwaves through the media and entertainment industry.

As per news releases published on their websites, Getty Images Holdings Inc. and Shutterstock have revealed that they have entered into a definitive merger agreement to combine their companies into one, creating a premier visual content company.

The new company will be known as Getty Images Holdings, Inc., and will even remain on the New York Stock Exchange (NYSE) under the ticker symbol “GETY”.

The merged company will have an enterprise value of approximately $3.7 billion.

It will also allow them to provide customers with a bigger and better content library across still imagery, video, music, 3D, and other asset types.

Furthermore, it will foster an increased capacity for product investment, innovation for content creation, and event coverage. This also includes enhancing customer‑facing technologies and capabilities such as search, 3D imagery, and generative AI.

What Are The Financials?

On the company’s side, the move will enable more robust cash flow, faster debt repayment, reduced borrowing costs, and a large avenue of new opportunities to create value for stockholders and customers. It also means the merged company will enjoy a revenue of almost $2 billion, including income from subscriptions.

At the close of the deal, Shutterstock shareholders can elect to receive cash for each share they own at $28.8487 per share, 13.67237 shares of Getty Images common stock for each share of Shutterstock common stock, or a mixed consideration of 9.17 shares of Getty Images common stock plus $9.50 in cash for each share of Shutterstock common stock they own.

As per the release, based on the common shares outstanding as of the signing date, the aggregate consideration payable by Getty Images would consist of $331 million in cash and 319.4 million shares of Getty Images stock.

What Did Getty Images And Shutterstock Top Brass Say?

Craig Peters, the CEO of Getty Images, said, “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.”

[Contd.] “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.”

Paul Hennessy, the CEO of Shutterstock, said, “We are excited by the opportunities we see to expand our creative content library and enhance our product offering to meet diverse customer needs.”

[Contd.] “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.”

[Contd.] “We look forward to working closely with the Getty Images management team to complete the transaction and drive the next chapter of growth.” 

What Does Its Future Look Like?

Once the deal closes, Getty Images' CEO, Craig Peters, will serve as CEO of the combined company. It will include an eleven-member board of directors, which will include Peters as Chairman.

Ahead of this, Getty Images will appoint six directors, while Shutterstock will designate the remaining four.

The deal is subject to customary closing conditions, regulatory approvals, the approval of Getty Images and Shutterstock stockholders, and the extension or refinancing of Getty Images’ existing debt obligations.

What do you think about the merger between two of the largest stock image and video companies? How do you think this move will affect its competitors?

Let us know in the comments below!