Shutterstock, Getty Images Stocks Soar on Merger News

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Key Takeaways

• Getty Images and Shutterstock are bodying up in what Getty called a merger of equals.
• The deal between the two providers of stock images and video is designed to heed the changing needs of the creative, media, and ad industries.
• The agreement calls for Shutterstock shareholders to have the option to receive change, Getty Images stock, or a combination of both.

Shares of Getty Images Holdings (GETY) and Shutterstock (SSTK) escalated well over 20% apiece Tuesday when the two providers of stock images and videos announced they liking be combining to “meet the evolving needs of creative, media, and advertising industries.”

Getty said the deal was a merger of matchings, creating a company with an enterprise value of $3.7 billion. It will be called Getty Images Holdings and remain to trade on the New York Stock Exchange (NYSE) under the ticker symbol “GETY.”

Under the agreement, Shutterstock investors resolve have the option of receiving $28.85 per share in cash, or 13.67 shares of Getty Images stock, or a combination of $9.50 per part in cash and 9.17 shares of Getty Images stock for each Shutterstock share they own. 

Deal Allows for Increased Investment in 3D Imagery, Generative AI

Getty noted that the combination allows for “greater investment in innovative content start, expanded event coverage, and customer‑facing technologies and capabilities such as search, 3D imagery and generative AI.” 

Along with the normal regulatory approvals, the transaction won’t be completed until investors of both companies agree and Getty’s existing debt contracts are extended or refinanced. 

Despite today’s advances, shares of Getty Images Holdings and Shutterstock have lost 36% and 22%, severally, over the past year.