Getty Images and Shutterstock have announced a merger to create a $3.7 billion visual content empire. The announcement comes at a time when companies using traditional still images are facing stiff competition from AI-powered images.

OBJECTIVES BEHIND THE MERGER:

Both companies said on Tuesday that their portfolios are complementary. The merger will provide consumers with a wider and more diverse choice of still images, video, music, 3D, and other media. “With the rapidly growing demand for compelling visual content across a variety of industries, there could not be a better time for our two businesses to come together,” said Craig Peters, CEO of Getty Images.

Meta is fined by Turkey after refusing to restrict content on Facebook and Instagram

After the merger, Peters will serve as CEO of the combined business.

Post merger opportunities:

“We are excited to see opportunities to expand our creative content library and increase the quality of products to meet the diverse needs of our customers,” said Paul Hennessy, CEO of Shutterstock.

Financial part of the merger:

After the merger, Getty Images shareholders will hold 54.7% of the combined company, while Shutterstock shareholders will hold 45.3%. Shareholders of Shutterstock will have three options for their shares:

Lengthy Port Strike Could Lead to Major Shortages and Inflation ,Which products could be affected by a strike? Pharmaceuticals and Cars and Auto Parts , to name a few

1. Cash option of $28.85 each,
2. Option of 13.67 shares each of Getty Images, or
3. Option for $9.50 in cash with 9.17 shares of Getty Images.

Name and leadership of the combined company:

After the merger, the company will be known as Getty Images and will continue to trade on the New York Stock Exchange under the ticker symbol ‘GETY’.

The Board of Directors of the company will have a total of 11 members. This will include Peters, six directors appointed by Getty Images, and four directors appointed by Shutterstock (which will also include Hennessy). The company’s current chairman, Mark Getty, will continue to serve as chairman after the merger.

Stock market growth:

Following the announcement, shares of New York-based Shutterstock rose more than 30%, while shares of Getty Images rose more than 58%.

Next direction in the field of visual content:

The merger is seen as an important milestone for the industry in the face of growing artificial intelligence-based competition. The merger will strengthen Getty Images’ leading position, as well as provide new services and products to customers.