The stock image industry is at a crossroads as generative AI tools like Midjourney make it easier than ever to create unique images instantly. In response to these challenges, two industry giants, Getty Images and Shutterstock, are merging to create a powerhouse valued at $3.7 billion.
Why the Merger is Happening
AI technology is shaking up the stock image business model, with users increasingly turning to tools that generate custom images on demand. To stay competitive, Getty Images and Shutterstock are combining forces to strengthen their position against the rise of AI-generated visuals.
Getty Images CEO Craig Peters described the merger as “exciting and transformational,” saying it will provide opportunities to improve content offerings, expand event coverage, and develop innovative technologies to better serve customers.
Shareholders Have Decisions to Make
As part of the merger, Getty Images will acquire Shutterstock, though the final purchase price has yet to be announced. Shutterstock shareholders now have three options for their shares:
- Exchange for Getty Images Shares: Receive 13.67 Getty Images shares for each Shutterstock share.
- Cash Option: Take $28.80 in cash for each Shutterstock share.
- Mixed Option: Receive $9.50 in cash and 9.17 Getty Images shares per Shutterstock share.
These options allow shareholders to decide how they want to benefit from the merger.
What’s Next for Getty and Shutterstock?
It’s possible we’ll see AI tools integrated into the new Getty Images-Shutterstock platform. Craig Peters hinted at this in his statement, emphasizing the importance of investing in new technologies to better serve customers.
Shutterstock CEO Paul Hennessy also pointed to the need for innovation, saying the merger will help both companies unlock growth opportunities, speed up product innovation, and improve financial stability.
In simpler terms, both companies recognize they need to adapt quickly to keep up with the rapid changes brought on by AI.
The Road Ahead
This merger marks a pivotal moment for the stock image industry as it navigates the challenges posed by generative AI. By joining forces, Getty Images and Shutterstock hope to create a stronger foundation to meet the demands of a rapidly evolving market. Whether their strategy succeeds will depend on how effectively they innovate and integrate new technology into their offerings.
