The news of a merger deal with Shutterstock caused shares of Getty Images Holdings, Inc. (NYSE: GETY) to jump 35.36% to $3.48. The two companies will combine as a “merger of equals,” becoming Getty Images Holdings, Inc., which will remain listed on the New York Stock Exchange with the symbol “GETY.” The partnership, which has an enterprise value of over $3.7 billion, intends to establish a leading visual content business.
Strategic Vision and Benefits
Customers and contributors alike stand to gain from the merger’s anticipated substantial improvements to the merged entity’s content repository. In order to meet the growing demand for visual material across sectors, Getty Images and Shutterstock plan to combine their resources to embrace more inclusive content, increase event coverage, and make investments in technical innovation.
Both businesses can better serve donors and consumers while taking advantage of growth potential thanks to this transformative collaboration, which comes at a critical juncture.
Governance and Leadership
Eleven people will make up the company’s Board of Directors after the merger, including Peters as CEO and six representatives from Getty Images and Shutterstock. The incumbent chairman of the corporation, Mark Getty, will head the board. Paul Hennessy, the CEO of Shutterstock, will also be heavily involved.
Stockholder Considerations
Shutterstock stockholders have several options for their shares:
- Cash consideration of $28.85 per share.
- 13.67 shares of GETY stock per share of Shutterstock stock.
- A hybrid option that includes $9.50 in cash per Shutterstock share and 9.17 shares of Getty Images stock.
The aggregate consideration includes $331 million in cash and 319.4 million Getty Images shares. Upon closure, GETY stockholders will hold 54.7% of the combined company, with Shutterstock stockholders owning 45.3%. The merger is subject to proration and adjustments to ensure equitable distribution.
Future Outlook
By utilizing complementary capabilities to spur innovation and quicken growth, the merged business is poised to revolutionize the visual content sector and provide long-term value for investors, contributors, and consumers.