Getty Images and Shutterstock confirm plans to merge for $3.7 billion. Here’s what you need to know.
The new entity will operate as Getty Images Holdings, Inc. and be listed on the New York Stock Exchange with the ticker symbol ‘GETY’
Getty Images and Shutterstock are set to merge, creating a new visual content powerhouse in a deal worth $3.7 billion.
The merger, announced on Tuesday, will result in the formation of Getty Images Holdings, Inc., which will trade under the “GETY” ticker on the New York Stock Exchange, as stated in the company’s press release.
As a result of this merger, the two companies aim to provide a more extensive content library, enhance opportunities for contributors, and reinforce their commitment to diverse and inclusive content.
Here’s what you should know about the merger and its implications for shareholders.
Who will lead Getty Images Holdings, Inc?
After the merger is finalized, Craig Peters, the current CEO of Getty, will take on the role of CEO for the new organization.
Peters expressed that this merger is an “exciting and transformative” step for both companies and will open up “multiple avenues to enhance our financial strength and invest in the future.”
The board of directors for the new company will consist of 11 members: six appointed by Getty Images, four by Shutterstock, along with Paul Hennessy, current CEO of Shutterstock. Mark Getty, the existing chairman of Getty Images, will serve as the chairman of the new board.
What does the merger mean for stockholders?
According to the merger agreement, Shutterstock stockholders will have options upon the merger’s completion, including:
- Receiving $28.84870 in cash for each share of Shutterstock common stock.
- Getting 13.67237 shares of Getty Images common stock for every share of Shutterstock common stock they own.
- A combination of 9.17 shares of Getty Images common stock along with $9.50 in cash for each share of Shutterstock common stock held.
As of the end of trading on Tuesday, Getty Images shares closed at $3.19 each on the New York Stock Exchange.
Upon completion of the merger, Getty Images stockholders will hold approximately 54.7%, while Shutterstock stockholders will own about 45.3% of the new company, on a “fully diluted basis,” as per the company’s announcement.
