Various generative services, such as Midjourney or DALL-E, which produce illustrations that can be customized for almost anyone for free based on a few prompts, are an increasing challenge for paid stock photo databases. The AI era is apparently forcing competitors to come together more closely and, according to the indications, it may bring more serious reorganizations in the market.
GettyImages announced on Tuesday its intention to merge with rival Shutterstock, which would result in the creation of a stock photography service valued at $3.7 billion. The deal would help companies expand content offerings and deliver new technologies. 54.7 percent of the combined company would be owned by Getty Images investors, while the rest would be owned by Shutterstock shareholders. The deal is expected to generate between $150 million and $200 million in annual cost savings for the combined company by the third year.
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The stock market reacted positively to the news, in pre-opening trading the value of the shares increased by 26.5 percent for Shutterstock and 50.2 percent for Getty Images. This is a significant turnaround, as the shares of both companies have shown a continuous downward trend in recent years, due to a decrease in demand that can also be explained by increasingly advanced mobile cameras.
The American and European competition authorities will not look at the deal with open arms either, a merger of this magnitude is expected to result in several antitrust investigations. The merged company will operate under the name Getty Images Holdings and will retain the ticker “GETY” on the New York Stock Exchange.
Source: www.hwsw.hu
