Graphic resource platforms Getty Images and Shutterstock have signed a definitive agreement to merge their businesses and operations, creating a large visual content company valued at approximately $3.7 billion, as they have announced. The resulting company will be called Getty Images Holdings, Inc and will continue to be listed on the New York Stock Exchange.
The operation between Getty Images and Shutterstock, pending approval by regulatory authorities and shareholders, will offer one of the largest content libraries globally. The move, both companies point out, will provide greater depth and breadth for customers, opportunities for its community of collaborators, a reinforced commitment to the adoption of inclusive and representative content, and greater capacity for investment and product innovation.
The operation responds to the advance of generative artificial intelligence solutions
The merger of the companies responds to a highly competitive and rapidly evolving environment marked by the unstoppable development of artificial intelligence and its generative solutions, such as OpenAI’s Midjourney and Dall-E, increasingly accessible to the general public. It also seeks to satisfy the high demand for content in a context dominated by audiovisual communication and digital channels.
In this sense, the companies consider that the merger will provide them with strategic advantages. They will bet on the innovation in areas such as search options, 3D images or generative artificial intelligence; HE will delve into the resource portfolio on still images, video, music, 3D and other types of assets; and relationship opportunities with content creators will be expanded.
“With demand for engaging visual content rapidly increasing across all industries, there has never been a better time for our two companies to come together.“; commented Craig Peters, CEO of Getty Images, in the statement. “By combining our complementary strengths we can better address client opportunities while delivering exceptional value to our partners, collaborators and shareholders.”.
“We are excited by the opportunities we see to expand our library of creative content and enhance our product offering to meet diverse customer needs.”, pointed out, for his part, Paul Hennessy, CEO of Shutterstock.
If the transaction is completed, the company will be led by Craig Peters, who will serve as CEO. The company will have a Board of Directors composed of eleven members, including Peters, six directors appointed by Getty Images, and four directors appointed by Shutterstock, including Hennessy. The president of this board will be Mark Getty, current President of Getty Images.
As for the financial details of the agreement, Getty Images will pay consideration of $331 million in cash and $319.4 million in company stock. At the closing of the transaction, Getty Images shareholders will own around 55% of the company’s capital; while Shutterstock will control the remaining 45%.
