Getty Images (GETY) and Shutterstock (SSTK) have agreed to a $3.7 billion merger, combining the two companies that license their libraries of photographs and other visual content. The deal is expected to be a big money-saver for both companies, saving $150 million to $200 million per year in operating and capital expenses.
The combined operations will present a more considerable competitor for big technology companies that are leveraging generative artificial intelligence to transform the creation of visual content. However, the merger announcement highlights a fast-evolving and highly competitive environment.
Shutterstock investors will receive $28.85 per share in cash for each share they own, while Getty shareholders will own approximately 55% of the combined company. Getty CEO Craig Peters will serve as the new CEO after the deal closes.
The news sent both Getty and Shutterstock shares soaring. Getty’s stock surged 24%, while Shutterstock jumped 20%. Adobe (ADBE), which provides design tools and licensing of visual content, traded lower on Tuesday due to its potential to face a stronger competitor in the market.
Source: https://www.investors.com/news/getty-images-shutterstock-merge-gety-adbe-ai-trump-antitrust