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

The two giants Getty Images and Shutterstock will merge to create a $3.7 billion imaging empire, preparing for the AI ​​era.

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

Reuters reported on January 7th that Getty Images, a giant in the image content and licensing industry, 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

Both "giants" are reportedly betting that the merger will help them cut costs and grow their companies by opening up more revenue opportunities, amid the rapid growth of AI generative tools like Midjourney which are posing a threat to the industry.

Following the announcement of the merger plan, Shutterstock's stock rose 22.7% and Getty's rose 39.7% – a positive sign for both companies, as both have seen their stock prices decline for at least the past four years due to the rise in mobile camera usage reducing demand for archived photo storage.

Getty CEO Craig Peters will head the merged company. The company's annual revenue is projected to reach $2 billion, benefiting from Getty's vast image content library and the strong community on Shutterstock.

Mr. Peters downplayed concerns about the impact of AI, and also expressed confidence that the merger would be approved by antitrust authorities in the US and Europe.

"We don't control the approval time, but we're quite confident in this deal. This isn't a situation where the client has no choice. They always have a choice," he said.

The merger of two giants in the copyrighted image content industry aims to prepare for the AI ​​challenge in the new era - Photo: REUTERS

Facing close scrutiny

However, according to many experts, President-elect Donald Trump's recent appointments to the Justice Department 's Antitrust Division signal that the close oversight that has characterized the agency in recent years will not change much.

"With President Trump's choice of Gail Slater to lead the antitrust agency in the upcoming term, this body will be even more active than during his first term," said John Newman, a law professor at the University of Miami.

Regulatory bodies will examine how this deal affects two business models: the traditional model (selling images to established media companies) and the new model (providing AI applications that generate copyright-compliant images for users).

The deal is expected to save up to $200 million in costs over the three years following completion. Getty's investors will hold approximately 54.7% of the merged company, while Shutterstock shareholders will own the remainder.

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

AI generation is becoming a major trend, unlocking new potential in many fields, but it also requires strict regulations to ensure users use the tool responsibly.

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