Getty Images and Shutterstock, two of the largest companies in the stock image market, have announced their merger, creating a new company valued at $3.7 billion. This deal will allow them to combine their vast collections of visual content, promising to transform how images are managed and distributed globally.
Merger Details
If regulators approve the deal, the combined company will be named Getty Images Holdings. Getty shareholders will own 54.7% of the new company, while Shutterstock shareholders will own 45.3%. This merger will allow both companies to consolidate their strengths in the image and multimedia content market.
Combining Content Libraries
Both companies possess massive libraries of visual content. Getty Images has over 80 million images available for license, although its full catalog is even larger. It also operates popular platforms like iStock and Unsplash. Meanwhile, Shutterstock has an even more extensive portfolio, which includes:
- Pond5 – video library.
- PremiumBeat – audio library.
- TurboSquid – 3D model library.
- Envato – multifunctional library.
As of September 2024, Shutterstock had over 530 million visual assets on its platform.
Expected Impact of the Merger
The merger will allow both companies to reduce costs and increase investment in new technologies. They are expected to achieve savings of up to $200 million over the next three years. Furthermore, the new company will be able to invest more in areas like generative artificial intelligence, which will enhance the automated creation of visual content.
Investments in Emerging Technology
One of the merger's goals is to increase investment in emerging technologies, especially artificial intelligence. Both Getty and Shutterstock have already launched AI image generation services trained on their own content. Additionally, Shutterstock is developing a service that converts text into 3D models, currently in beta.
"With the rapid increase in demand for engaging visual content across all industries, there has never been a better time to join forces," stated Craig Peters, CEO of Getty Images.
Reactions to the Announcement
The merger news has been well received by investors, who saw an increase in the stock value of both companies. However, the reaction from artists has been less enthusiastic. Some consider this merger another step towards greater concentration in the stock image market, which could negatively affect commission rates for photographers.
The Future of the Image Industry
With the creation of Getty Images Holdings, the new company is expected to have even greater control over the stock image market, which could change the dynamics of how artists interact with these platforms. Despite the criticism, the opportunities for technological growth are clear, especially with the bet on artificial intelligence.