Getty Images and Shutterstock are merging to create a giant company specializing in photography and other visual content in a deal worth a total of $3.7 billion, the companies announced Tuesday.
The partnership comes as photography and other still images face increased new competition from images created by artificial intelligence, the two companies said Tuesday, adding that the two companies have complementary portfolios and are merging. The company announced that it will now be able to offer customers a wider range of still images and videos. , music, 3D and other media.
Getty and Shutterstock will enter into a merger of equals. In other words, the two companies will enter into an agreement with approximately the same market capitalization and business scope, forming a new integrated entity.
“With the demand for engaging visual content rapidly increasing across the industry, there has never been a better time for our two businesses to join forces,” Getty Images CEO Craig Peters said in a prepared statement. said.
At closing, Getty Images shareholders will own approximately 54.7% of the combined company and Shutterstock shareholders will own approximately 45.3%.
The combined company, led by Mr. Peters, will continue to trade on the New York Stock Exchange under the ticker symbol “GETY.”
Getty stock soared nearly 60% in premarket trading Tuesday on news of the merger. As of Monday's close, the stock was selling for $2.57 per share.
Shutterstock stock rose about 30% before the market opened on Tuesday.
Shutterstock CEO Paul Hennessy said in a statement that the two companies will combine their content libraries to “strengthen our product offering to meet the diverse needs of our customers.”
“The merger will leverage attractive growth opportunities to drive both companies' revenues, accelerate product innovation, realize significant cost synergies, and improve cash flow to benefit the customers and shareholders of both companies,” he said. We expect it to bring value to the
Shutterstock stockholders have the option of receiving approximately $28.85 per share in cash or approximately $28.85 per share for each share of Shutterstock common stock they own. For every share of Shutterstock common stock they own, they own approximately 13.67 shares of Getty Images common stock. or a mixed consideration of 9.17 shares of Getty Images common stock and $9.50 in cash for each share of Shutterstock common stock you own.
The board of directors has 11 members, including Mr. Peters, six directors nominated by Getty Images, and four directors nominated by Shutterstock (including Hennessy). Mark Getty, current chairman of Seattle-based Getty Images, will serve as chairman.
with post wire
