Two of the world’s leading licensed visual content platforms, Getty Images and Shutterstock, have announced their merger. The deal, valued at $3.7 billion, will combine the companies’ resources and strengthen their positions in the media, advertising and other industries. This was reported by Bloomberg.
Details of the deal
- Getty Images will pay $331 million in cash and transfer 319.4 million of its shares.
- Shutterstock shareholders will be able to choose between cash, shares or a combination of both.
- Getty Images will own 54.7% of the new company, and Shutterstock will own 45.3%.
- After the merger is completed, the company will operate under the name Getty Images Holdings.
The purpose of the merger
The merger involves:
- Merging the Getty Images content library with the Shutterstock platform, which specialises in creating conditions for authors to earn money.
- Cost optimisation, which is expected to amount to $150-200 million annually by the third year after the merger.
- Expanding opportunities for clients from various industries, including media, advertising and corporate.
Economic effect
The news of the deal caused the shares to rise sharply:
- Shutterstock rose by 44%.
- Getty Images showed an increase of 100%.
Despite previous financial challenges, the merger of Getty Images and Shutterstock aims to create the largest library of licensed visual content. Through the deal, the companies aim to respond to market challenges more effectively, ensuring competitiveness in a dynamic digital environment.
