The stock image industry is set to be reshaped by the bold merger of Getty Images and Shutterstock, a deal valued at $3.7 billion. This merger aims to create a leading powerhouse in visual content, positioned to address the growing challenges of artificial intelligence (AI) and evolving market needs.
As AI tools like DALL-E and MidJourney continue to disrupt the visual content landscape, Getty Images and Shutterstock see this merger as an opportunity to strengthen their market position. By combining their resources and expertise, the new entity will offer a larger and more diverse content library, making sure creators, advertisers, and media outlets have access to an unparalleled range of high-quality images, videos, music, and even 3D assets.
Getty Images CEO Craig Peters, who will lead the combined company, described the merger as “exciting and transformational.” He emphasized that the union will enable greater investments in innovative technologies, including enhanced search capabilities, generative AI, and expanded event coverage.
The Financials and Stockholder Impact
Shutterstock shareholders have the option to choose between three forms of compensation: $28.80 per share in cash, 13.67 shares of Getty Images stock per Shutterstock share, or a mixed package of 9.17 Getty shares plus $9.50 in cash. The deal values Shutterstock shares at a premium, sparking a surge in both companies’ premarket trading—Shutterstock rose 26.5%, while Getty Images climbed 50.2%.
Following the merger, Getty Images investors will hold approximately 54.7% of the combined company, while Shutterstock shareholders will own the remaining 45.3%.
Credit: Gettyimages
A Boost for Both Companies
The combined company, to be named Getty Images Holdings, is expected to generate significant cost savings of $150–$200 million annually by the third year. These savings will come from streamlined operations, reduced SG&A expenses, and smarter capital expenditure. The company also projects increased earnings and cash flow by year two of the merger.
The pro forma financial outlook for 2024 estimates revenue between $1.98 billion and $1.99 billion, with subscription-based revenue accounting for 46%. The combined EBITDA is projected at approximately $570 million, further strengthening the company’s financial profile.
Addressing Market Challenges
Both Getty Images and Shutterstock have faced challenges in recent years as mobile photography and free image-sharing platforms have decreased demand for traditional stock photography. The merger is a calculated effort to reverse these trends by leveraging shared strengths, fostering innovation, and meeting the changing needs of customers.
Paul Hennessy, CEO of Shutterstock, highlighted the merger’s potential to accelerate product innovation and create new opportunities for contributors. “This partnership enables us to expand our content offerings and better serve customers while delivering strong value to our stockholders,” he said.
Looking Forward
The newly formed Getty Images Holdings will continue trading on the New York Stock Exchange under the ticker symbol “GETY.” The board of directors will feature 11 members, including six from Getty Images, four from Shutterstock, and Mark Getty as chairman.
While regulatory approvals and stockholder votes are still required, the deal is expected to close in 2025. Once finalized, the merger could redefine the visual content landscape, making the combined company a formidable competitor against generative AI.
For content creators, advertisers, and businesses reliant on stock media, this merger could mean access to a deeper, more varied collection of content and tools that adapt to the needs of an increasingly digital and AI-driven world.
