Getty Images and Shutterstock have announced that they are to merge, forming a new $US3.7 billion ($AU 5.94 billion) company to be named Getty Images Holdings.
Together, the two companies are betting the merger will help cut costs and grow their businesses with more revenue opportunities in the face of looming challenges from the use of generative AI tools.
Shutterstock’s shares jumped 22.7 per cent, while Getty was up 39.7 per cent on the back of the news. Both companies have seen their share prices declined for at least the last four years.
The two companies said in a news release that the merger will allow for increased investment “in innovative content creation, expanded event coverage, and customer‑facing technologies and capabilities such as search, 3D imagery and generative AI”.
It will also create a broader set of visual content products across still imagery, video, music, 3D and other asset types, as well as giving its stock image and video creators greater access to buyers.
They also reckoned there would be between $US150 and $US200 million ($AU240-320 million) worth of savings and efficiencies to be made from the merger.
“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.
“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 Paul Hennessy, CEO, Shutterstock.
“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. We look forward to working closely with the Getty Images management team to complete the transaction and drive the next chapter of growth.”
