Getty Images and Shutterstock, which are considered representative stock image platform companies, will merge into one company
Getty Images and Shutterstock, two prominent stock image platform companies, have announced their decision to merge into a single entity. This strategic move comes in response to the increasing competition faced by such platforms from the growing presence of image-generating artificial intelligence tools.
On the 7th of the month, Getty Images officially confirmed the signing of a stock exchange merger agreement between the two companies, paving the way for the formation of a new entity named "Getty Images Holdings." Under this merger, Getty Images will acquire Shutterstock, with Getty Images shareholders retaining 54.7% ownership stake in the new company.
Leadership and Market Capitalization
The merged entity will be led by Getty Images CEO Craig Peters. The combined market capitalization of Getty Images and Shutterstock post-merger is estimated to be around $3.7 billion.
Craig Peters emphasized the current market demand for high-quality visual content across various industries as a driving factor behind the merger. He stated, "There is a growing demand for attractive visual content across the industry. It is the best time for the two companies to join forces as one."
Business Operations and AI Integration
Both Getty Images and Shutterstock have been actively engaged in curating extensive collections of stock images and videos, providing licensing services to media companies, businesses, and institutions. However, the emergence of AI tools capable of generating images from text inputs, such as OpenAI's "Dalley" and Midjourney, has posed a significant challenge to traditional stock image providers.
While Getty Images has introduced Generative AI tools leveraging its own image library, the adoption rate among customers has been relatively low. The merger between the two companies is seen as a strategic response to the AI threat, aiming to enhance operational efficiency, reduce costs, and accelerate service innovation.
Future Outlook
Getty Images anticipates achieving synergies within the new entity over the next three years, resulting in cost savings ranging from $150 million to $200 million. By consolidating their resources and expertise, the merged company aims to stay ahead in the evolving landscape of visual content creation and distribution.
