Getty Images and Shutterstock merge in $3.7 billion deal

(CLO) On January 7, Getty Images announced that it would merge with rival Shutterstock to form a $3.7 billion image-providing corporation. This move is to adapt to the era of artificial intelligence (AI).

The two leading providers of licensed visual content are hoping that the merger will help them cut costs, increase revenue, and expand their business opportunities. As AI-generated content like Midjourney becomes more popular, the traditional visual market is facing major challenges.

Illustration: AI

The deal is estimated to be worth more than $1 billion. Shutterstock shares rose 22.7% immediately after the announcement, while Getty shares rose 39.7%. However, both companies have seen their shares decline steadily over the past four years as demand for stock images has declined due to the popularity of mobile cameras.

Craig Peters, CEO of Getty Images, will lead the combined company, which is expected to generate nearly $2 billion in annual revenue. The new company will leverage Getty's vast content library and Shutterstock's strong user community.

Peters also expressed confidence that the deal will receive approval from antitrust regulators in both the US and Europe. "Customers always have choice, and we are confident in the likelihood of approval," Peters said.

Experts say that under the current US administration, antitrust scrutiny will not ease. John Newman, a law professor at the University of Miami, said the agencies will continue to maintain a tough stance on large deals.

Regulators will consider whether the merger would negatively impact traditional business models.

Getty Images competes with big names like Reuters and the Associated Press in providing images and videos for editorial purposes. With this deal, Getty and Shutterstock not only strengthen their position in the traditional market but also aim to build copyright AI applications to meet the increasing needs of modern users.

The merger marks a major turning point in the imaging industry as companies must change to meet the challenges of AI technology. It is also a sign that the rapid development of technology is forcing traditional businesses to seek new strategies to survive and develop.

Cao Phong (according to Getty, Shutterstock, Reuters)

Source: https://www.congluan.vn/getty-images-va-shutterstock-sap-nhap-de-doi-dau-voi-hinh-anh-ai-post329469.html