The recent merger between Shutterstock and Getty Images, valued at $3.7 billion, has resulted in the formation of a significant entity within the stock photo industry. This merger was officially announced on January 7, 2023, confirming earlier speculation reported by Bloomberg.
Under the terms of the deal, Getty Images shareholders will retain a majority stake, holding 54.7% of the newly combined company, while Shutterstock shareholders will own 45.3%. The merged entity will continue to operate under the Getty Images brand and will encompass well-known brands such as iStock and Unsplash.
This merger occurs amidst considerable challenges faced by the stock photo sector, particularly due to the emergence of artificial intelligence (AI). Generative AI technologies, such as Midjourney, Dall-E, and Runway ML, have enabled users to create images and videos, which poses a direct threat to traditional stock photo businesses. Nonetheless, AI also presents new growth opportunities. Getty Images can potentially license its extensive content library to AI companies for model training and the development of innovative search and editing tools.
Craig Peters, CEO of Getty Images, commented on the merger, stating, “Today’s announcement marks an exciting transition for both companies. This merger will open up many opportunities to strengthen our financial and investment foundations, invest in the future, improve content quality, expand operations, and develop new technologies to better serve our customers.”
As the consolidation of these two industry leaders unfolds, it is expected to draw scrutiny from regulatory agencies concerning potential competition implications within the market.