Getty Images and Shutterstock will merge to create a giant company focused on photos and other visual content in a deal valued at $3.7 billion, the two firms announced Tuesday.
The companies — whose tie-up comes as photography and other still images face new competition from images generated by artificial intelligence — said Tuesday that they have complementary portfolios and that a merger will provide customers with a range of wider range of images, videos. , music, 3D and other media.
Getty and Shutterstock will enter into a merger of equals — meaning each firm enters the deal with roughly the same market capitalization and operational scope to form a new, combined entity.
“With demand for compelling visual content growing rapidly across industries, there has never been a better time for our two businesses to come together,” Getty Images CEO Craig Peters said in a prepared statement.
Getty Images shareholders will own about 54.7% of the combined company at closing and Shutterstock shareholders will own about 45.3%.
The combined company, which will be led by Peters, will continue to trade on the New York Stock Exchange under the symbol “GETY.”
News of the merger sent Getty shares up nearly 60% in premarket trading on Tuesday. The stock traded at $2.57 per share in late trading on Monday.
Shares of Shutterstock rose about 30% before the market opened on Tuesday.
The two companies will combine their content libraries in order to “enhance our product offering to meet the diverse needs of customers,” Shutterstock CEO Paul Hennessy said in a statement.
“We expect the merger to generate value for customers and shareholders of both companies by capitalizing on attractive growth opportunities to drive combined revenue, accelerate product innovation, realize significant cost synergies and improve cash flow.” ,” he said.
Shutterstock stockholders may elect to receive either approximately $28.85 per share in cash for each share of Shutterstock common stock they own; approximately 13.67 shares of Getty Images common stock for each share of Shutterstock common stock they own; or a blended consideration of 9.17 shares of Getty Images common stock plus $9.50 in cash for each share of Shutterstock common stock they own.
Its board will have 11 members, consisting of Peters, six directors appointed by Getty Images and four directors appointed by Shutterstock, including Hennessy. The chairman will be Mark Getty, current chairman of Seattle-based Getty Images.
By postal wire
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