Getty Images Holdings Inc. is buying rival stock photo provider Shutterstock Inc. in a deal that will create a combined company valued at about $3.7 billion.
Getty Images Holdings Inc. is buying rival stock photo provider Shutterstock Inc. in a deal that will create a combined company valued at about $3.7 billion.
Getty Images is expected to pay $331 million in cash and $319.4 million in its own stock for the deal. After the deal closes, Getty Images owners will own about 54.7% of the combined company, while Shutterstock shareholders will own the rest. Craig Peters, Getty Images' chief executive officer, will continue in the same role in the combined company, Bloomberg reported .
The deal brings together two of the largest providers of licensed visual content in the U.S., as AI disrupts the content creation market and mobile phone cameras make stock photos less valuable. The deal will combine Getty Images' vast library of photos, illustrations and videos with Shutterstock's massive search platform, which allows users to upload their own content.
Getty Images has lost about 73% of its market value since going public in July 2022. The company has $1.4 billion in debt. Shutterstock is down about 50%
After the deal was announced, Shutterstock's value jumped 44%, and Getty Images's by 100%.
The companies hope that by combining, they will be able to reduce costs and increase profitability by offering a broader set of services to the media, advertising and content creation industries.
