Getty Images to Acquire Shutterstock in $1.3 Billion Deal
New York, Wednesday, 8 January 2025.
Getty Images Holdings is set to acquire Shutterstock, expanding their influence in the visual content market with a combined enterprise value of $3.7 billion.
Deal Structure and Valuation
Getty Images Holdings, Inc. (NYSE: GETY) announced on January 7, 2025, its agreement to acquire Shutterstock, Inc. (NYSE: SSTK) in a significant merger transaction [1][3]. The deal offers Shutterstock shareholders multiple options: they can receive $28.84870 per share in cash, 13.67237 shares of Getty Images stock, or a combination of 9.17 shares plus $9.50 in cash per share [1]. The total consideration includes $331 million in cash and 319.4 million Getty Images shares [1][3].
Leadership and Ownership Structure
The combined entity will retain the name Getty Images Holdings, Inc. and continue trading under the NYSE ticker symbol GETY [1][5]. Current Getty Images CEO Craig Peters will lead the merged company [1][3]. The ownership structure will see Getty Images stockholders controlling approximately 54.7% of the company, while Shutterstock stockholders will own the remaining 45.3% [1][5]. The board composition reflects this distribution, with six directors from Getty Images and four from Shutterstock, including current Shutterstock CEO Paul Hennessy [1].
Strategic Rationale and Market Impact
This merger comes at a crucial time as the visual content industry faces disruption from artificial intelligence and changing market dynamics [3]. The combined company projects pro forma 2024 revenue between $1.979 billion and $1.993 billion, with 46% coming from subscription revenue [5]. The merger is expected to generate annual cost synergies ranging from $150 million to $200 million by the third year [1].
Timeline and Regulatory Considerations
While both companies’ boards have unanimously approved the transaction [1], the deal’s completion faces several hurdles. It requires both shareholder and regulatory approvals, along with the extension or refinancing of Getty Images’ existing debt obligations [1]. The merger is anticipated to close in the second half of 2025 [1], and will serve as an early test for antitrust regulators under the incoming administration [3].