What just happened? Getty Images has agreed to purchase rival stock media provider Shutterstock as part of a cash and stock deal valued at approximately $3.7 billion. The combined company, which will be known as Getty Images Holdings, would emerge as one of the leading stock media outlets… that is, if regulators don’t intervene.

Getty Images already works with more than half a million content creators around the globe and serves customers in nearly every country. The outlet, which also owns the iStock and Unsplash brands, covers over 160,000 news, sports, and entertainment events annually, and licenses its content to ad agencies, news organizations, documentary makers, and others.

Shutterstock, meanwhile, was founded in 2003 by Jon Oringer using 30,000 of his own photos. The company has continued to build its portfolio ever since through contributions from creative partners and acquisitions; as of September 30, 2024, the service had more than 530 million assets in its library.

Per the terms of the acquisition, Shutterstock shareholders can choose to receive one of the following for each share they own: $28.85 in cash, 13.67 shares of Getty Images common stock, or a mixed combo of 9.17 shares of Getty Images stock plus $9.50 in cash. Upon closing, Getty Images stockholders will own approximately 54.7 percent of the combined company while Shutterstock shareholders will own the remaining 45.3 percent.

Stock services like Getty Images and Shutterstock find themselves at a pivotal place in their journeys. While demand for stock media remains high thanks to our increasingly digital world, the emergence of AI-generated pictures, videos, and audio appears poised to throw a wrench into the mix. Some services, including Shutterstock, have signed licensing deals with AI companies to let them use their images for training purposes. Should that strategy continue, the stock media industry could look vastly different in the near future.

For now, the two companies will need to focus on obtaining regulatory approval for the merger, which could be tricky in given the current political climate.