US photo agencies Getty and Shutterstock to merge

Getty Images and Shutterstock, two of the largest picture agencies globally, announced Tuesday that they plan to merge, creating a visual content giant.

The new entity, Getty Image Holdings, will be valued at approximately $3.7 billion, the companies said in a joint statement.

The merger is expected to yield savings of $150 million to $200 million within three years of its completion.

“With the rapid rise in demand for compelling visual content across industries, there has never been a better time for our two businesses to come together,” said Getty Images CEO Craig Peters.

The deal includes a $331 million cash payment from Getty Images and the issuance of 319.4 million shares to Shutterstock shareholders.

Post-merger, Getty Images shareholders will own 54.7% of the new company, while Shutterstock shareholders will hold 45.3%.

Craig Peters will lead Getty Image Holdings as CEO, while Mark Getty, co-founder and current chairman of Getty Images, will serve as chairman.

Getty Images first went public in 1996 before being taken private in 2008. The Getty family regained control of the company in 2018, acquiring a majority stake from Carlyle Group.

The company returned to the stock market in 2021, valued at $4.8 billion.

Shutterstock, founded in 2003, has grown into one of the leading platforms for stock imagery, competing directly with Getty Images.

The merger signals consolidation in the industry as demand for high-quality visual content continues to grow worldwide.