Recently, Getty Images, headquartered in Seattle and a giant in image copyright, officially announced a merger with its biggest competitor to date, Shutterstock, through a cash-and-stock transaction. The combined entity will be named Getty Images Holdings, Inc., with an estimated market value of approximately 37 billion US dollars. Craig Peters, the current CEO of Getty Images, will continue to lead this new entity.
Under the terms of the deal, Shutterstock shareholders have several options. They can choose to receive 28.85 US dollars in cash for each share of Shutterstock common stock, or exchange it for 13.67 shares of Getty common stock. There is also a hybrid option where shareholders can opt for 9.17 shares of Getty common stock plus 9.50 US dollars in cash per share of Shutterstock.
The newly merged entity is expected to generate revenue close to 2 billion US dollars in 2024, with approximately 46% of that revenue coming from subscription services. Additionally, the two companies anticipate cost savings of between 150 million and 200 million US dollars annually over the three years following the merger.
The board of the new company will consist of 11 members, with Getty nominating six directors and Shutterstock appointing four. Paul Hennessy, the current CEO of Shutterstock, has confirmed his position on the board.
The new company will focus on developing generative AI capabilities and plans to expand event coverage while exploring new technologies such as 3D images.
It's worth noting that Getty owns brands like Getty Images, iStock, and Unsplash, while Shutterstock acquired Giphy in 2023. Since its IPO in 2021, Getty Images reported annual revenue of 917 million US dollars in 2023, down from 926 million US dollars in 2022. In the third quarter of 2024, the company reported revenue of 240.5 million US dollars but incurred a net loss of 2.5 million US dollars. Meanwhile, Shutterstock reported revenue of 250.6 million US dollars in the third quarter of 2024, with total revenue of 874.6 million US dollars in 2023.
