Today, Shutterstock and Getty Images announced their plans to create Getty Images Holdings, a visual content company valued at $3.7 billion. Shares of Shutterstock increased by nearly 30% following the announcement, while Getty Images’ shares surged by around 73%.
Getty Images CEO Craig Peters, who will serve as Getty Images Holdings CEO, told investors this morning: “Today’s announcement is exciting and transformational for our companies, unlocking multiple opportunities to strengthen our financial foundation and invest in the future—including enhancing our content offerings, expanding event coverage, and delivering new technologies to better serve our customers… there has never been a better time for our two businesses to come together. By combining our complementary strengths, we can better address customer opportunities while delivering exceptional value to our partners, contributors, and stockholders.”
Paul Hennessy, CEO of Shutterstock said, “We expect the merger to produce value for the customers and stockholders of both companies by capitalizing on attractive growth opportunities to drive combined revenues, accelerating product innovation, realizing significant cost synergies and improving cash flow. We look forward to working closely with the Getty Images management team to complete the transaction and drive the next chapter of growth.”
The new company will be composed of 54.7% ownership held by Getty Images shareholders and will continue to trade under GETY.
The combined company’s projected revenue ranges from $1,979 million to $1,993 million, according to a statement from Getty Images today.
By CEO NA Editorial Staff
