The two of the world’s largest pictures agencies in stock photography, Getty Images and Shutterstock, have announced plans to merge, a move set to reshape the visual content industry. The merger, revealed on Tuesday, will combine the vast image libraries and resources of the two companies into a single entity, which will be called Getty Image Holdings.
According to a joint statement, the newly formed company will have an estimated value of $3.7 billion. The merger is expected to generate cost savings of between $150 million and $200 million within the first three years.
Craig Peters, CEO of Getty Images, expressed enthusiasm about the merger. “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,” Peters said.
“By combining our complementary strengths, we can better address customer opportunities while delivering exceptional value to our partners, contributors, and stockholders.”
Once finalized, Getty Image Holdings will continue to trade on the New York Stock Exchange, reflecting the company’s commitment to maintaining its presence in public markets.
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Under the terms of the deal, Getty Images will offer $331 million in cash and issue 319.4 million shares to Shutterstock shareholders. Following the merger, Getty Images shareholders will hold approximately 54.7% of the new company, while Shutterstock shareholders will own the remaining 45.3%.
Craig Peters will take on the role of CEO for the combined company, while Mark Getty, co-founder and current chairman of Getty Images, will serve as chairman of the board.
Getty Images, a leading provider of stock photography, has undergone significant changes over the years. After its initial public offering in 1996, the company was taken private in 2008. In 2018, the Getty family regained control by purchasing Carlyle’s 51% stake in the company. However, the acquisition also left Getty Images burdened with substantial debt.
The company returned to public markets in 2021, valued at around $4.8 billion. Earlier in 2023, activist investment firm Trillium Capital made an unsuccessful attempt to acquire Getty Images for approximately $4 billion.
The merger marks a pivotal moment in the visual content sector, with Getty Images and Shutterstock combining their strengths to meet the growing demand for high-quality imagery across various industries. By pooling resources and expertise, the new Getty Image Holdings aims to provide enhanced value to customers, contributors, and investors alike.
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