Getty Images and Shutterstock agree to $3.7 billion merger, lifting shares of By Investing.com
Investing.com – Shares of Getty Images (NYSE: ) rose on Tuesday after the announcement of a merger with peer Shutterstock (NYSE: ) to form a roughly $3.7 billion stock titan poised to tackle the challenges posed by the rise of artificial intelligence.
The move, which is still subject to shareholder approval and is expected to receive regulatory scrutiny, comes as the company battles competition from AI-enhanced text-to-image platforms such as OpenAI DALL-E.
Under the terms of the deal, Shutterstock shareholders can choose whether to receive $28.84870 per share in cash or 13.67237 shares of Getty Images. They could also opt for a combination of 9.17 shares of Getty Images and $9.50 in cash for each Shutterstock share they own.
Investors in Getty Images would own about 54.7% of the joint venture, with Shutterstock shareholders holding the rest.
Craig Peters, the current CEO of Getty Images, will serve as head of the combined group after the transaction closes, the company said in a statement. The new entity will continue to trade on the New York Stock Exchange under the symbol “GETY”, it added.
“With the rapid increase in demand for compelling visual content across all industries, there has never been a better time for our two companies to come together,” Peters said.
Specifically, the companies said the transaction will facilitate greater investment in “innovative content creation,” help expand event coverage, and build consumer-centric technologies and capabilities “such as search, 3D imaging and generative artificial intelligence.” The deal is expected to result in savings of between $150 million and $200 million annually by the third year after it is finalized.
“By combining our complementary strengths, we can better address customer opportunities while delivering exceptional value to our partners, associates and shareholders,” Peters added.
Getty Images’ share price jumped more than 31% in early US trading, while Shutterstock’s share price also jumped more than 22%.
