Getty Images and Shutterstock's Merger: A Strategic Move to Adapt to AI and Tech Evolution

Getty Images and Shutterstock, two big names in the picture licensing business, are joining forces because AI is becoming more important in the creative field. The deal is worth about $3.7 billion and will join the two businesses into one called Getty Images Holdings, Inc. The united company, which is expected to make almost $2 billion in 2024, will be run by Craig Peters, CEO of Getty Images. Subscription-based programs are expected to bring in about 46% of this money.

People who own shares in Shutterstock can choose to get cash, Getty stock, or a mix of the two for their shares. It is expected that the merger will save $150 to $200 million a year in costs within three years. The board of the new company will have 11 members. Peters will choose six, and Shutterstock will choose four. Paul Hennessy, who is the CEO of Shutterstock, will also be on the board.

The merger shows a desire to focus on growing generative AI, making event coverage better, and testing new technologies like 3D imagery. With names like iStock and Unsplash owned by Getty and Giphy bought by Shutterstock, this new company will be able to use the best parts of both. Getty's income has been going down a little over the past few years, but this merger should help them out financially and set them up for future growth in the creative space, which is changing so quickly.

Source : The Tech Portal