Getty Images Holdings is exploring a merger with its rival Shutterstock, Bloomberg News reported on Friday, citing people familiar with the matter, sending the stock of both image licensing companies up in afternoon trading.
Getty’s shares were up 20.3% in afternoon trading, while shares of Shutterstock were up 7.7%.
The development comes at a time when Getty Images has struggled to retain customers and replace the lost customers. Its creative and editorial products, two of its largest revenue segments, declined year-over-year in 2023, according to its annual report.
The decline in the popularity of stock image websites has coincided with the rise of AI tools like Midjourney and DALL-E 2, which can generate unique images quickly and cheaply.
Seattle, Washington-based Getty is considering how to structure a deal that would unite two of the biggest U.S. providers of licensed visual content, the report said.
Founded in 1995, Getty is a global supplier of stock photos, videos, and other visual content. Its brands, including Getty Images, iStock, and Unsplash, serve enterprise, media, and agency customers. Getty’s shares have lost 58.9% of their value over the past year, according to LSEG data.
Getty Images has over 70 exclusive content partners, such as AFP, Walt Disney, and BBC Studios, who use the platform for content management and licensing. Additionally, organizations like FIFA, Formula One, and the NBA utilize Getty to distribute event content and manage commercial rights with exclusive access.
New York-based Shutterstock is a global platform for licensing a diverse collection of 3D models, videos, music, photographs, vectors, and illustrations. It includes brands such as Giphy, which it acquired in 2023.
Deliberations are ongoing and Getty could choose not to pursue a deal, the report added.
Getty Images and Shutterstock did not immediately respond to Reuters’ requests for comments.
Source: Reuters.com