Getty Images Holdings Inc. has announced plans to acquire rival stock-photo provider Shutterstock Inc., a strategic move that will create a combined company valued at approximately $3.7 billion, including debt.
Under the terms of the agreement, Getty Images will pay around $28.85 per Shutterstock share in cash or offer roughly 13.67 Getty shares for each Shutterstock share.
Alternatively, Shutterstock shareholders may choose a combination of cash and Getty shares as part of the deal.
This acquisition, confirmed in a statement on Tuesday, according to Bloomberg.
The deal unites two major U.S. licensed visual content providers, responding to shifts in the content-creation market driven by artificial intelligence and the widespread use of smartphone cameras, which have diminished the value of traditional stock photography.
The deal combines Getty Images’ vast library of photos, illustrations, and videos with Shutterstock’s robust, searchable platform that enables contributors to upload and share their content.
As of Monday’s close, Getty Images, burdened with approximately $1.4 billion in debt, had lost about 73% of its market value since going public in July 2022 through a SPAC deal.
Shutterstock also saw a decline of about 50% over the same period.
However, following the announcement on Tuesday, Shutterstock’s shares jumped as much as 44% in premarket trading, while Getty’s surged by as much as 100%.
