2 of the largest stock photo platforms are merging, sending their shares up

Getty Images is combining with Shutterstock.

Getty Images and Shutterstock are merging in a deal that could help the company better prepare for artificial intelligence.

On Tuesday, Getty’s stock jumped 24%, while shares of Shutterstock rose 14%, a sign that investors welcome the merger.

The combined company, which will be called Getty Images, will be worth $3.7 billion, Getty said in a release on Tuesday. It expects the deal to generate up to $200 million in cost savings over three years and come with more revenue opportunities.

On a call to announce the merger, Craig Peters, Getty’s CEO, who will head the new company, and Paul Hennessy, Shutterstock’s CEO, gave little weight to AI risks, saying AI is an opportunity for the companies.

“Our businesses have not seen any impact as a result of GenAI,” Peters said. He said the companies would benefit from combining their products with AI.

“We see increased usage in our stock content from our AI customers, and we’re seeing new customers coming into the franchise for our AI products,” Hennessy said. “There’s a one plus one equals to three on that front.”

The companies are two of the largest in the visual content business. They provide editorial photographs and stock images used for content creation.

Getty is offering to pay about $28.85 in cash, or about 14 shares of Getty Images shares, for each Shutterstock share.

Details on the timeline of the combination were not announced.

The combined Getty and Shutterstock business will have stronger finances and plans to invest in content creation, event coverage, and generative AI, the release said.

Companies across industries are being proactive about AI-proofing their core businesses.

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