Getty Images and Shutterstock combined forces to build one dominant company in the photo market in a deal estimated at $3.7 billion.
Getty Images has offered Shutterstock shareholders $28.85 per share in cash or about 13.67 Getty Images shares for each Shutterstock share, the companies said in a statement released on Tuesday.
Also, Getty Images will pay $331 million in cash and issue 319.4 million of its own shares to Shutterstock.
By the close of the deal, Getty Images shareholders are expected to hold 54.7% of the new combined company with the remainder allocated to Shutterstock shareholders.
Craig Peters, Getty Images’ current CEO, will continue to lead the combined company in the same role.
“This deal comes at a time of significant disruption within the content creation market, as artificial intelligence continues to reshape the industry and smartphone cameras challenge the value of traditional stock photography,” the companies stated.
The two companies aim to offer broader services to industries such as media, advertising, and content creation while leveraging Getty’s extensive library of photos, illustrations, and videos alongside Shutterstock’s expansive searchable platform that allows contributors to upload their content.
The merger is also expected to provide a much-needed boost to both companies after a challenging period following their public listings.
Getty Images’ stock value dipped by 73% in recent years, while Shutterstock fared similarly with its market value dropping by about 50% over the same timeframe.
However, following today’s announcement, Shutterstock’s stock surged by 44% in premarket trading while Getty Images saw a remarkable 100% increase.
