Getty and Shutterstock gear up for merger, to become $3.7 bn visual media firm

Two giant stock media platforms, Getty images and Shutterstock, are heading for a merger worth $3.7 billion. 

“The combined company, which would have an enterprise value of approximately $3.7 billion, will be named Getty Images Holdings, Inc and will continue to trade on the New York Stock Exchange under the ticker symbol ‘GETY’,” as per the statement from Getty.

The move is believed to be a way for the media licensing firms to tackle the challenge of artificial intelligence (AI), which has recently been made accessible to more and more people for image and video generation.

“With the rapid rise in demand for compelling visual content across industries, there has never been a better time for our two businesses to come together,” said CEO, Getty Images.

The benefits of the Getty-Shutterstock merger, as stated by the company, are –

Cutting edge innovation like 3D imagery and generative AI, expanded opportunities for content creators, significant synergies (drives expected run rate synergies across SG&A and CAPEX between $150 million and $200 million achieved within the first three years post‑close, with approximately two‑thirds expected to be delivered within the first twelve to twenty‑four months).

“On a pro forma 2024 basis the combined company would have an attractive financial profile with revenue of between $1,979 million and $1,993 million, including 46% of subscription revenue,” suggested the company.

Getty CEO to lead

As per the company, “Getty Images’s CEO, Craig Peters, will serve as CEO of the combined company. The combined company will have an eleven‑member Board of Directors, comprised of Getty Images CEO Craig Peters, six directors designated by Getty Images and four directors designated by Shutterstock, including Paul Hennessy, Shutterstock CEO.”

Getty Images stockholders will own approximately 54.7% and Shutterstock stockholders will own approximately 45.3% of the combined company on a fully diluted basis, noted the statement.