Getty Images and Shutterstock merge, confronting the 'era' of AI photography

Two 'giants' Getty Images and Shutterstock will merge to create a $3.7 billion image empire, preparing for the AI era.

Craig Peters, CEO of Getty Images, will lead the merged company - Photo: AFP

Reuters news agency reported on January 7 that the "giant" in the copyright image content industry, Getty Images, will merge with its rival - Shutterstock - to create a $3.7 billion image empire, in preparation for the future era of artificial intelligence (AI).

Billion dollar deal

The two giants are said to be betting that the merger will help them cut costs and grow their companies by opening up more revenue opportunities, as the proliferation of generative AI tools like Midjourney poses a threat to the industry.

Following the merger announcement, Shutterstock shares rose 22.7% and Getty shares rose 39.7% — a positive sign for both companies as Shutterstock and Getty have both seen their stock prices decline over at least the past four years, as the rise in mobile camera use has reduced demand for stock photos.

Getty CEO Craig Peters will head the combined company, which is expected to generate $2 billion in annual revenue and benefit from Getty’s vast image content and the growing community on Shutterstock’s platform.

Mr. Peters downplayed concerns about the impact of AI, and expressed confidence that the merger would be approved by antitrust regulators in the United States and Europe.

"We don't have control over the approval time, but we are quite confident in the deal. This is not a situation where the customer has no choice. They always have a choice," he said.

The merger of two "giants" in the copyright image content industry is to prepare for the AI challenge in the new era - Photo: REUTERS

Facing close scrutiny

However, many experts say President-elect Donald Trump's recent appointments to the Justice Department 's antitrust division signal that the tight oversight that has characterized the agency in recent years will not change much.

"With Mr. Trump choosing Ms. Gail Slater to head the antitrust agency in the upcoming term, this department will be even more active than in his first term," said John Newman, a law professor at the University of Miami.

Regulators will look at how the deal affects two business models: the traditional model (selling images to established media companies) and the new model (providing copyright-compliant AI-generated image applications to users).

The deal is expected to generate up to $200 million in cost savings within three years of closing. Getty investors will own about 54.7% of the combined company, while Shutterstock shareholders will own the remainder.

Generative Artificial Intelligence is one of the advanced applications of AI, allowing machines to not only analyze and process data but also create new content such as text, images, audio, video or source code.

Generative AI is becoming an important trend, opening up new potential in many fields, but also requiring strict regulation to ensure users use the tools responsibly.

Source: https://tuoitre.vn/getty-images-va-shutterstock-sap-nhap-doi-dau-ky-nguyen-anh-ai-20250108133349188.htm