In a major consolidation move, Getty Images and Shutterstock have agreed to merge in a cash-and-stock deal valued at $3.7 billion. The combined entity, to be called Getty Images, will bring together two leading providers of stock photos and video footage.
Under the terms of the deal, Getty Images shareholders will own approximately 54.7% of the new entity, while Shutterstock shareholders will own 45.3%. Shutterstock shareholders will have the option to receive $28.80 per share in cash, 13.67 shares of Getty Images, or a combination of both.
The merger comes at a critical time for the stock image industry, as artificial intelligence (AI) is transforming the landscape. AI presents both opportunities and challenges for Getty Images, as the company can license its content to AI companies for training their models, while also facing competition from generative AI tools that can create custom images and videos.
The combined company will have a vast library of stock photos and video footage, including the iStock and Unsplash brands. The merger is expected to create a stronger competitor in the market, better equipped to navigate the challenges and opportunities presented by AI.
