LogInThe combined entity, called Getty Images Holdings, Inc., will provide more diverse and innovative content.
The major stock photo companies Getty Images and Shutterstock recently announced a merger deal, which will result in the formation of a premier visual content company. The combined entity, with an estimated enterprise value of approximately $3.7 billion, will be called Getty Images Holdings, Inc.
As stated by Getty Images, the joint company will offer greater depth, expanded opportunities, and "reinforced commitment to the adoption of inclusive and representative content." The annual cost synergies are expected to amount to $150 million to $200 million by the third year, and earnings and cash flow are forecast to increase in year two.
Craig Peters, CEO at Getty Images, who will be the head of the new entity, said that the merger would provide the companies with multiple opportunities, which include offering more diverse content:
"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," said Craig Peters. "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."
Shutterstock CEO Paul Hennessy noted that joint forces would help providing more extensive content and increase product innovation:
"We are excited by the opportunities we see to expand our creative content library and enhance our product offering to meet diverse customer needs," shared Paul Hennessy. "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."
The merger deal will need antitrust approval, and Craig Peters recently said (via Reuters) that he was confident it would be granted both in the United States and Europe: "We don't control the timing of (the approval), but we have a high confidence. This has been a situation where customers have not had choice. They've always had choice."
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