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Stock Image Giants Getty and Shutterstock in Merger Talks

By  |  January 5, 2025

Getty Images Holdings is reportedly considering a potential merger with its chief competitor, Shutterstock, a move that could reshape the stock image licensing industry. According to a Reuters report on Friday, discussions about a possible deal have taken place, with insiders indicating that both companies are exploring the best way to structure a partnership. Following the news, shares of both companies experienced a significant boost during afternoon trading, with Getty’s stock rising by 20.3% and Shutterstock’s increasing by 7.7%.

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    The potential merger comes at a challenging time for Getty Images, which has been grappling with a decline in key revenue streams. According to its most recent annual report, both its creative and editorial products, two of its largest business segments, experienced year-over-year revenue declines in 2023. The company has struggled to retain and replace lost customers amid growing competition from artificial intelligence (AI) tools such as Midjourney and OpenAI’s DALL-E 2, which allow users to generate custom images quickly and at a lower cost.

    Per Reuters, Seattle-based Getty Images is assessing the complexities of a deal that would unite two of the largest providers of licensed visual content in the U.S. Founded in 1995, Getty offers a wide array of stock photos, videos, and other visual assets through its various brands, including iStock and Unsplash. The company caters to media, enterprise, and agency clients and holds partnerships with major content providers such as AFP, Walt Disney, and BBC Studios. Additionally, Getty manages commercial rights and exclusive content distribution for organizations like FIFA, Formula One, and the NBA.

    Getty’s financial struggles have been evident over the past year, with its stock losing 58.9% of its value, according to LSEG data. The reported merger could potentially stabilize the company’s position in the competitive visual content market.

    New York-based Shutterstock, meanwhile, has established itself as a leading platform for licensing diverse visual content, including 3D models, videos, music, photographs, and illustrations. The company expanded its portfolio in 2023 by acquiring Giphy, a popular platform for animated GIFs. Shutterstock has built a reputation for providing creative assets to businesses and individuals worldwide.

    The potential combination of these two industry giants could create a powerhouse in the stock image sector. However, the rise of AI-generated content remains a disruptive factor that both companies must navigate to remain competitive.

    Source: Reuters