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Getty Images (GETY.N) said on Tuesday it would merge with rival Shutterstock (SSTK.N) to create a $3.7 billion stock-image powerhouse geared for the artificial intelligence era, in a deal likely to draw antitrust scrutiny.
The companies, two of the largest players in the licensed visual content industry, are betting that the combination will help them cut costs and grow their business by unlocking more revenue opportunities at a time when the growing use of generative AI tools such as Midjourney poses a threat to the industry.
Shutterstock’s shares jumped 22.7%, while Getty was up 39.7%. Stocks of both companies have declined for at least the past four years, as the rising use of mobile cameras drives down demand for stock photography.
Getty CEO Craig Peters will lead the combined company, which will have annual revenues of nearly $2 billion and stands to benefit from Getty’s large library of visual content and the strong community on Shutterstock’s platform.
Peters downplayed the impact of AI on Tuesday and said that he was confident the merger would receive antitrust approval both in the United States and Europe.
The deal is expected to generate up to $200 million in cost savings three years after its close. Getty investors will own about 54.7% of the combined company, while Shutterstock stockholders will own the rest.
