Rival image providers Getty and Shutterstock have agreed to merge, claiming the combined company will be worth around $3.7bn.
The companies said the merger will result in a bigger content library for customers, including pictures, videos and music, as well as more opportunities for their contributors and a “reinforced commitment to the adoption of inclusive and representative content”.
They added that with their combined financial resources they would be better able to invest in product development and innovation including in generative AI. They are expecting annual cost synergies of between $150m and $200m by year three of the merger.
Both companies are currently listed on the New York Stock Exchange and their shares soared before the market opened after the deal was announced: Getty was up 45% while Shutterstock rose 24%.
The resulting company after their merger of equals will be called Getty Images Holdings Inc and trade as GETY, led by Getty’s CEO Craig Peters.
Their combined revenue is around $2bn, with 46% coming from subscriptions, and their pre-synergy EBITDA (earnings before interest, taxation, depreciation and amortisation) is around $570m.
Peters said: “Today’s announcement is exciting and transformational for our companies, unlocking multiple opportunities to strengthen our financial foundation and invest in the future—including enhancing our content offerings, expanding event coverage, and delivering new technologies to better serve our customers.
“With the rapid rise in demand for compelling visual content across industries, there has never been a better time for our two businesses to come together. By combining our complementary strengths, we can better address customer opportunities while delivering exceptional value to our partners, contributors, and stockholders.”
As well as Peters, the new company will be led by a board of directors featuring him, six directors designated by Getty and four chosen by Shutterstock, including its current chief executive Peter Hennessy. The board will be chaired by Mark Getty, currently in the same role at the company he co-founded.
Getty was founded in 1995 while Shutterstock began life in 2003.
The companies have so far taken different approaches to the arrival of generative AI. Shutterstock signed a six-year agreement with OpenAI in July 2023 giving it access to a huge amount of training data – but earlier that same year Getty sued Stability AI for “unlawfully” copying and processing millions of its images without a licence and that case is expected to go to a full trial.
Update: The National Union of Journalists is seeking assurances that Shutterstock contributors will be allowed to opt out of their images being used in Getty’s AI generator function. It is also calling for a commitment to pay “decent and sustainable” prices for images.
NUJ general secretary Laura Davison said: “Many of our members are rightly concerned about the implications of the Getty and Shutterstock merger and whether it may result in a cut to the royalties they receive. It is clear this multi-billion dollar deal will significantly change the landscape reducing media plurality; we need bold commitments as part of next steps to ensure photographers do not bear the brunt of any cost-cutting.
“As we witness the harm AI-generated images can cause in spreading misinformation and disinformation, the value of news photography remains evident. We are seeking assurances and engagement from Getty who must recognise their responsibilities to rightsholders.”
Email pged@pressgazette.co.uk to point out mistakes, provide story tips or send in a letter for publication on our "Letters Page" blog
