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Getty Images and Shutterstock are merging into one stock photo powerhouse
In a move aimed at bolstering its content offerings and expanding event coverage in the face of increasing competition from AI-powered image creation tools, Getty Images and Shutterstock have announced that they will be merging to form a single stock photo powerhouse. The merger, valued at around $3.7 billion, is expected to enhance the combined companies’ capabilities and better serve their customers.
Under the terms of the agreement, Getty Images CEO Craig Peters will remain at the helm of the newly merged entity when the deal closes. A reworked board of directors will consist of representatives from both Getty Images and Shutterstock, including Shutterstock CEO Paul Hennessy.
The merger comes amidst a significant shift in the industry, with text-to-image AI tools from companies like OpenAI, Google, Microsoft, and Adobe gaining traction. In response to this trend, Getty Images launched its own image generator trained on its vast library of licensed photos last year. The company also partnered with online image editor Picsart to create a “responsible, commercially-safe” AI image generator.
Shutterstock, on the other hand, has secured agreements with Meta, Google, and Amazon to develop its own AI capabilities. In addition, it recently struck an AI training deal with OpenAI.
The merged entity will be well-positioned to address the growing threat posed by these emerging technologies. By combining their resources, the companies aim to deliver new technologies and expand their content offerings, allowing them to better serve their customers in a rapidly evolving industry landscape.
In light of this development, it remains to be seen whether antitrust regulators will scrutinize the merger or not.
Source: http://www.theverge.com
