Getty Images Holdings, Inc. (GETY) entered a merger agreement on January 7, 2025, with Shutterstock, Inc. (SSTK) forming a major stock-image partnership designed to help both companies thrive in the AI era.
As part of the agreement, Shutterstock shareholders can choose one of three options at closing: $28.85 in cash per share, 13.67 shares of Getty Images stock per share, or a combination of 9.17 Getty Images shares and $9.50 in cash per Shutterstock share.
The closing price of $33.07 per share reflects a premium of 10.05% from the stock’s last closing.
At closing, Shutterstock shareholder payouts will be adjusted to ensure each share effectively receives $9.50 in cash and 9.17 Getty Images shares. Based on the current number of shares, Getty Images expects to pay about $331 million in cash and issue 319.4 million shares of its stock.
When the deal is complete, Getty Images stockholders will own about 54.7% of the combined company, and Shutterstock stockholders will own about 45.3%.
Shutterstock is a global technology company that provides high-quality images, videos, music, and creative workflow solutions, providing businesses and creators with resources for digital media, marketing, and content creation.
Getty Images is a leading global visual content creator and marketplace, offering high-quality images, videos, and music through its Getty Images, iStock, and Unsplash brands, serving customers worldwide with powerful creative solutions and tools.
Reports of Getty Images exploring a potential merger with Shutterstock emerged recently, with Shutterstock’s stock trading at $29.17 before Bloomberg reported that Getty was considering different deal structures.
The merged company will be called Getty Images Holdings, Inc. and will keep trading on the New York Stock Exchange under the symbol “GETY.”
“We are excited by the opportunities we see to expand our creative content library and enhance our product offering to meet diverse customer needs,” said Paul Hennessy, CEO of Shutterstock.
Getty expects to save between $150 million and $200 million in costs from areas like sales, general, and administrative expenses, and capital expenditures within the first three years after the deal closes, with about two-thirds of these savings coming in the first one to two years.
The combined company is expected to have revenue between $1.979 billion and $1.993 billion, including 46% from subscriptions. The pre-synergy EBITDA is expected to be between $569 million and $574 million, and the pre-synergy Adjusted EBITDA after capital expenditures are projected to be between $461 million and $466 million.
Craig Peters, the CEO of Getty Images, will become the CEO of the combined company. The new company will have an eleven-member Board of Directors, with Peters and six other directors chosen by Getty Images, and four directors selected by Shutterstock, including Shutterstock’s CEO, Paul Hennessy. Mark Getty, the current Chairman of Getty Images, will be the Chairman of the combined company’s Board.
Getty Images is acquiring Shutterstock at 1.21 times its sales.
For an in-depth understanding of this merger and acquisition transaction, please visit the Deal Metrics page:
Deal Metrics for the acquisition of Shutterstock, Inc. (SSTK) by Getty Images Holdings, Inc. (GETY)
The Deal Metrics page provides a comprehensive overview of the merger, including:
Disclaimer: This article does not provide investment advice. Investors are advised to conduct their own due diligence before making investment decisions. The accuracy and completeness of the information provided in this article are not guaranteed.
Editor’s Note: Baranjot Kaur contributed to this article