Getty Images and Shutterstock announce $3.7 billion merger

The stock photography industry is set for a seismic shift as Getty Images and Shutterstock have agreed to merge in a cash-and-stock deal, creating a combined entity valued at approximately $3.7 billion. This groundbreaking union will combine the strengths of two leading visual content giants, reshaping the landscape of creative, media, and advertising industries.

Getty Images and Shutterstock have long been synonymous with high-quality stock photos, video footage, and other visual assets, serving diverse clients from news organizations to advertising agencies. The merger comes at a crucial time as advancements in artificial intelligence (AI) continue to disrupt the stock image market. With AI tools such as MidJourney and OpenAI’s DALL-E enabling users to generate custom visuals, the merged company aims to position itself as a powerhouse for both traditional and AI-driven visual content solutions.

According to Getty Images CEO Craig Peters, who will lead the combined company, “This merger unlocks multiple opportunities to strengthen our financial foundation, enhance content offerings, and invest in innovative technologies to better serve our customers.” Shutterstock CEO Paul Hennessy echoed this sentiment, emphasizing the potential for expanded creative libraries, enhanced product offerings, and significant cost synergies.

The combined entity will operate under the name Getty Images Holdings, Inc., retaining its NYSE ticker symbol “GETY.” The merger promises an enriched content library, blending the complementary portfolios of Getty Images, iStock, Unsplash, and Shutterstock. Customers can look forward to a broader selection of still images, videos, music, 3D assets, and generative AI content.

The merger is also expected to deliver substantial financial benefits. Annual cost synergies are projected to range between $150 million and $200 million within three years, with approximately two-thirds realized in the first 24 months. Additionally, the combined company’s stronger financial profile will accelerate debt repayment and boost cash flow, enabling further investments in innovation and customer-facing technologies.

For contributors, the merger expands opportunities to reach a global audience while fostering a commitment to inclusive and representative content. Customers will benefit from advanced technologies, including improved search capabilities, AI-powered tools, and 3D imagery, designed to meet the evolving demands of a competitive visual content market.

The strategic alignment of Getty Images and Shutterstock also reflects a shared vision for addressing the growing demand for compelling visuals. With pre-synergy revenue expected to reach nearly $2 billion in 2024 and subscription revenue accounting for 46%, the company is well-positioned to lead the market.

The combined company will feature an eleven-member Board of Directors, with Craig Peters as CEO and Mark Getty as Chairman. Shutterstock’s leadership will remain integral, with Paul Hennessy and three other directors joining the board. Shareholders of Getty Images will own approximately 54.7% of the new entity, while Shutterstock shareholders will hold 45.3%.

Under the merger agreement, Shutterstock shareholders can choose from three compensation options: cash, Getty Images stock, or a mix of both. The deal structure ensures balanced representation and benefits for stakeholders on both sides.