Getty Images is set to acquire its competitor, Shutterstock, according to Bloomberg.

Getty Images Holdings Inc. has agreed to acquire its competitor, photo supplier Shutterstock Inc. This will result in the formation of a combined company with a market value of approximately $3.7 billion, including debt.

Bloomberg reports this news.

Getty Images is offering about $28.85 in cash or roughly 13.67 shares of Getty for each share of Shutterstock. Additionally, Shutterstock shareholders may choose a mixed payment option—cash and stock.

It is expected that Getty Images will pay $331 million in cash and 319.4 million of its own shares for the deal. After the merger, Getty Images owners will hold approximately 54.7% of the combined company, while Shutterstock shareholders will own the remainder. Getty Images CEO Craig Peters will continue to serve in the same role within the merged entity.

“The deal unites the two largest providers of licensed visual content in the U.S., as artificial intelligence transforms the content creation market, and mobile phone cameras diminish the value of stock photos. It will combine Getty Images' vast library of photographs, illustrations, and videos with Shutterstock's extensive search platform that allows creators to upload their content,” the agency stated.

Both companies hope that the merger will enable cost reductions and enhance profitability by offering a broader range of services for media, advertising, and content creation industries.

Getty Images carries approximately $1.4 billion in debt. As of January 6, the company has lost about 73% of its market value since going public in July 2022 due to a deal without checks. During the same period, Shutterstock has dropped by about 50%. Following the announcement of the deal on January 7, Shutterstock surged by 44% in pre-market trading, while Getty's shares rose by 100%.

Background. Previously, Mind reported that OpenAI anticipates the emergence of the first AI workers later this year.