Getty Images explores potential merger with rival Shutterstock

Getty Images, based in Seattle, Washington, has been considering how to structure a deal that would unite two of the largest providers of licensed visual content

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New Delhi: Getty Images Holdings Inc. is reportedly in discussions to merge with its competitor, Shutterstock Inc., according to a recent Bloomberg report. 

Getty Images, based in Seattle, Washington, has been considering how to structure a deal that would unite two of the largest providers of licensed visual content. 

The potential merger comes at a time when Getty Images has seen declines in its creative and editorial product segments, which are among its biggest revenue contributors. The company's struggle to retain and replace customers has been exacerbated by the rise of AI-generated images, which offer a quick and cost-effective alternative to traditional stock photography.

Bloomberg's report, citing anonymous sources familiar with the matter, indicates that discussions are still ongoing, and no final decision has been made. Deliberations on how to structure such a deal are complex, considering the regulatory scrutiny that a merger of this magnitude would attract.

The stock market responded enthusiastically to the merger speculation. After the news broke, Getty Images' shares surged by as much as 32%, marking their highest increase since 2023, while Shutterstock's shares rose by 7.7%. This reflects investor optimism about the potential benefits of such a merger, including cost synergies, expanded content libraries, and a stronger market position in an industry grappling with technological disruptions like AI-generated content.

Getty Images, with its vast archive and partnerships with major content providers like AFP, Walt Disney, and BBC Studios, alongside its exclusive content distribution deals for events with organisations like FIFA and the NBA, brings significant assets to the table. On the other hand, Shutterstock, a New York-based company, has grown into a global platform, offering not just photographs but also 3D models, videos, music, and illustrations, bolstered by its acquisition of Giphy in 2023.

While both companies have been reticent to comment officially on the merger talks, the potential combination could offer a strategic advantage in countering the competitive pressures from AI technologies like Midjourney and DALL-E 2, which are making inroads into the image creation and licensing market.

 

Getty Images Dall-E merger
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