Getty Images has announced plans to merge with another big industry player – Shutterstock – in a $3.7 billion dealGetty Images CEO Peter Craig will lead the merged companies and will be raking in annual revenue of $2 billion It is expected that the move would attract a lot of antitrust scrutiny, especially as the inauguration of US President-elect Donald Trump draws near
Henzodaily.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
Getty Images has announced plans to merge with its foremost competitor, Shutterstock.
The merger will create a single company worth $3.7 billion, which is set to become a powerhouse in the industry.
Both companies have battled with dwindling revenues in the last year due to the emerging competition with Artificial Intelligence (AI) generated images, which reduced the demand for stock images.
Read also
NCC, MTN, other telcos reportedly agree on 100% tariff hike, to invest proceeds on infrastructure
Getty CEO Craig Peters will lead the combined company, which will generate nearly $2 billion in annual revenue.
Photo Credit: Jerod Harris
Source: Getty Images
As two of the leading players in the licensed visual content space, Getty and Shutterstock project that this merger will help them cut back on costs and unlock more revenue opportunities to offset the growing pressure from AI advancement into the image generation space.
Share prices surge
Investors see the potential of this merger, and both companies’ stock prices have appreciated significantly since the announcement.
Shutterstock shares surged by 22.7% after the announcement, while Getty Images shares soared 39.7%.
This is coming after years of declining stock prices for both companies, largely caused by reduced demand for stock imagery as mobile cameras become more prevalent.
Post-merger shareholding structure
Under the agreement, Shutterstock shareholders will have three options: $28.80 per share in cash, 13.67 shares of Getty Images stocks, or a combination of 9.17 Getty shares plus $9.50 in cash for each Shutterstock share.
Read also
Nigeria’s oil production to grow as Seplat targets 120,000 bpd in 6 months
Reuters estimates show that the transaction values the deal at over $1 billion.
Getty will lead the merger
Getty CEO Craig Peters will lead the combined company, which will generate nearly $2 billion in annual revenue.
The new company will be expected to leverage Getty’s extensive content library alongside Shutterstock’s robust platform community to strengthen its market position and move on to bigger wins.
Mr. Peters has expressed confidence that the merger will secure approval from the relevant quarters in good time.
He downplayed the potential risks posed by AI to the industry, stating that customers have always had options in the past, and they could trust the regulators in the U.S.A and Europe to protect their interests.
Antitrust oversight under Trump
Experts, however, anticipate continued rigorous antitrust oversight.
John Newman, a law professor at the University of Miami, noted that recent changes in the US Department of Justice’s Antitrust Division signal an aggressive approach to mergers under President-elect Donald Trump’s administration.
Read also
Airtel CEO urges Nigerian Govt to approve call and data tariff hike, gives reasons
Stricter scrutiny is to be expected, with Gail Slater heading the division.
Tech giants rally behind Trump
Meanwhile, Henzodaily.ng reported that Tech giants have rallied behind US President-elect Donald Trump as his inauguration draws closer.
Facebook announced that it would end its US fact-checking program and replace it with a community notes feature similar to the one used on X (formerly Twitter).
Amazon, Meta, and Tim Cook of Apple also announced huge donations to Trump’s inauguration fund.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Henzodaily.ng