Key Takeaways

Shares of Getty Images Holdings ( GETY ) and Shutterstock ( SSTK ) soared well over 20% apiece Tuesday when the two providers of stock images and videos announced they would be combining to "meet the evolving needs of creative, media, and advertising industries."

Getty said the deal was a merger of equals, creating a company with an enterprise value of $3.7 billion. It will be called Getty Images Holdings and continue to trade on the New York Stock Exchange (NYSE) under the ticker symbol "GETY."

Under the agreement, Shutterstock investors will have the option of receiving $28.85 per share in cash, or 13.67 shares of Getty Images stock, or a combination of $9.50 per share in cash and 9.17 shares of Getty Images stock for each Shutterstock share they own.

Deal Allows for Expanded Investment in 3D Imagery, Generative AI

Getty noted that the combination allows for "greater investment in innovative content creation, expanded event coverage, and customer‑facing technologies and capabilities such as search, 3D imagery and generative AI ."

Along with the usual regulatory approvals, the transaction won't be completed until investors of both companies agree and Getty's existing debt obligations are extended or refinanced.

Despite today's advances, shares of Getty Images Holdings and Shutterstock have lost 36% and 22%, respectively, over the past year.

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