Getty Images Holdings, Inc. and Shutterstock, already the two largest licensed visual content companies in the world, have announced plans to merge, creating a 'premier visual content company.'
The combined company, which would have a value of approximately $3.7 billion USD ($5.93b AUD) will be named Getty Images Holdings, Inc., according to the companies.
In a press release, Getty Images and Shutterstock says the merger will allow it to offer a content library with greater depth and breadth for the benefit of customers, along with expanded opportunities for its contributor community and a reinforced commitment to the adoption of inclusive and representative content.
Furthermore, the stronger financial profile of the combined company is expected to create increased capacity for product investment and innovation.
On the back of the announcement, Shutterstock’s shares jumped 26.5% in premarket trading, while Getty Images was up 50.2%. Stocks of both the companies have been in decline for a number of years.
“Today’s announcement is exciting and transformational for our companies, unlocking multiple opportunities to strengthen our financial foundation and invest in the future—including enhancing our content offerings, expanding event coverage, and delivering new technologies to better serve our customers,” said Craig Peters, CEO, Getty Images.
“By combining our complementary strengths, we can better address customer opportunities while delivering exceptional value to our partners, contributors, and stockholders,” he said.
Peters will serve as the CEO of the combined company. Getty Images investors will own about 54.7% of the new company with Shutterstock stockholders owning the remainder.
According to the companies, the deal is expected to generate between $150 million and $200 million in annual cost savings by its third year.
In an email to Getty contributors seen by Australian Photography – Capture's sister publication, Peters sought to reassure its contributor community.
"We are undertaking this merger in large part because we expect it to provide expanded reach for your content, support for new asset types and formats and enhanced support and tools to manage your work.
"We believe in the opportunity of AI, but [also] the need to compensate creators for the use of their work. These beliefs will not change with the transaction," he said.
Once the merger is complete, the new company will continue to trade on the New York Stock Exchange under the ticker symbol “GETY”.