Getty Images Acquires Shutterstock To Form $3.7B Visual Content Company

According to Getty Images CEO Craig Peters, "there has never been a better time for our two businesses to come together."

Getty Images has bought Shutterstock for $3.7 billion merger, creating a content company to compete against images curated by artificial intelligence, the Associated Press reports.

In a Jan. 21 statement, the companies announced the merger will consist of complementary portfolios along with providing clients with a broader span of still imagery, videos, music, 3D and other media.

“With the rapid rise in demand for compelling visual content across industries, there has never been a better time for our two businesses to come together,” Getty CEO Craig Peters said.

Shutterstock CEO Paul Hennessy said the merger gives an opportunity “to expand our creative content library and enhance our product offering to meet diverse customer needs.” Peters will stay on as the CEO of the newly created company, operating as Getty Images, and will continue to trade on the New York Stock Exchange under the ‘GETY’ ticker symbol.

Including Peters, the company will consist of 11 board members, six directors from Getty Images and four designated by Shutterstock, including Hennessy. Current chairman Mark Getty will stay on as board chair.

Getty shareholders will own close to 54.7% of the combined company at closing, while Shutterstock stockholders will capture approximately 45.3%.

There are several options available for Shutterstock holders including the choice to receive approximately $28.85 per share—in cash—for each share of owned Shutterstock common stock, or a mixed consideration of 9.17 shares of Getty Images common stock plus an additional $9.50 in cash for every share of Shutterstock common stock that they own.

At the time of the merger, Shutterstock shares increased by more than 30% before the market opened and Getty Images’ stock went up more than 58%.

The demand for pictures has increased in the fight against A.I. along with cellphone cameras reducing the value of stock photography, according to Bloomberg. Getty Images, founded in 1995, has a wealthy archive of legendary photos including O.J. Simpson’s police chase, former President Barack Obama in the situation room during the operation to kill Osama bin Laden, and sports images as the company employs photographers in partnerships with FIFA, the NCAA and PGA Tour.

Since 2012, Shutterstock has provided a searchable platform that allows contributors to upload their content in exchange for royalty payments for clients to download.