Getty Images merges with rival Shutterstock to form $3.7B company
What's the story
Getty Images has announced its merger with Shutterstock, creating a $3.7 billion stock image giant. While the deal is expected to bolster the companies' position in the AI era, it could also draw antitrust scrutiny. The newly formed entity is called Getty Images Holdings Inc. and will continue trading on the New York Stock Exchange under the ticker symbol "GETY."
Market reaction
Leadership and market response to the merger
Upon the completion of the merger, Getty Images's current CEO Craig Peters will lead the combined company. The market has reacted positively to the news with Shutterstock's shares jumping 9.9% in premarket trading. Meanwhile, Getty Images's shares have also jumped as much as 18.7%. Shutterstock's shareholders are getting one of the following: $28.84 per stock in cash, 13.67 Getty shares for each Shutterstock stock they own, or a mix of cash and stock.
Competition
Getty Images's position in the editorial content market
Getty Images is a major player in the editorial content space, going up against leading organizations such as Reuters and the Associated Press. The company offers photos and videos for editorial use, a service that will be bolstered by its merger with Shutterstock. This consolidation would greatly shape the stock imagery and related services space.