Getty Images and Shutterstock have reached a purchase agreement to launch a new company with unprecedented reach. The merger will provide space for a combined entity valued at US$ 3,7 billion, including debts. Both companies will merge their services provided to the media industry, advertising and content, providing photo collection, illustrations and videos.
At the moment, Getty and Shutterstock are the two largest licensed visual content references in the United States. That's why, the new company will already be born with control of half of the global licensed images. Getty Images holds the largest collection of images and, now, will use Shutterstock's search platform for this merger of services.
The CEO of Getty Images, Craig Peters, will continue to hold the same position in the combined company. The proposal is that, together, brands can cut costs and increase profitability, offering broader and more complete services to the media industry.
Payment arrangements
Getty Imagens became the owner of 54% of the new company, while Shutterstock got 45,3%. As agreed, company shareholders can choose to receive payment by mixing cash or share value. Like this, Getty Images offered to pay US$ 28,85 cash for each share, or, the equivalent of US$ 13,67 for every Shutterstock share.
Yet, It is possible to combine these payment options. For the final transaction, Getty allocated a payment of US$ 331 millions in cash and US$ 319,4 for your actions. Holders offered around 54,7% of the combined company. The sales agreement statement was announced in early January.
Industry presents changes
The image market has been modified by the advancement of artificial intelligence (IA) generative e, also, through the cameras that, lately, has caused the loss of value of photos. In this context, Getty Images lost 73% of its market value and has accumulated US$ 1,4 billions in debt.
During this same period, Shutterstock also recorded a drop in 50% in its value. Nonetheless, after the announcement of a merger between the companies, the brand's pre-market negotiations grew 44%. Getty Images' images soared to more than 100%.
