Getty Images and Shutterstock, two of the world’s largest commercial photo and video providers, have announced plans to merge in a $3.7 billion deal. The decision comes amid market challenges driven by the emergence of artificial intelligence tools that have flooded the internet with AI-generated images.
Getty Images is known for providing photography and video services to news agencies and companies globally, including coverage of red carpets and movie premieres. Shutterstock, meanwhile, features a massive library containing 450 million images.
If the deal goes through, the new company will operate under the name “Getty Images Holdings” led by current CEO Craig Peters, and will continue trading on the New York Stock Exchange under the ticker GETY. The company expects to achieve savings of between $150 million and $200 million within three years by combining operations.
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New opportunities and content enhancement
Craig Peters, CEO of Getty, described the announcement as an exciting transformation for both companies, noting that the merger will provide them with opportunities to strengthen their financial foundation, invest in the future through content improvement, expand event coverage, and deliver new technologies to better serve customers.
Peters added: “With the growing demand for engaging visual content across various industries, there has never been a better time to combine our complementary capabilities to meet customer needs and deliver outstanding value to our partners and shareholders.”
Facing artificial intelligence challenges
The merger comes at a time when the internet is experiencing significant changes due to artificial intelligence tools, such as OpenAI’s DALL-E tool, which allows users to generate custom images within seconds, posing a threat to Getty and Shutterstock’s business model in this space.
To address these challenges, both companies have launched their own generative AI tools, allowing customers to edit images in their libraries using similar technology in a commercially safe manner. However, artificial intelligence companies face legal lawsuits from writers and artists over their models using copyrighted material for AI training.
Future outlook
Paul Hennessy, CEO of Shutterstock, stated: “We are excited about the opportunities we see to expand our creative content library and improve our product offerings to meet diverse customer needs.” He added: “We expect the merger to generate value for both customers and shareholders by capitalizing on growth opportunities, accelerating innovation, achieving significant savings, and improving cash flows.”
