By Mackenzie Tatananni
Getty Images stock skyrocketed in premarket trading Tuesday after the company said it plans to merge with rival stock photography service Shuttershock.
Shares of the visual content marketplace were up 83% to $4.70 after Getty Images announced that it had entered into a definitive merger agreement worth $3.7 billion.
The resulting company will be named Getty Images Holdings Inc. and will continue to trade on the New York Stock Exchange under the ticker "GETY, " Getty Images said.
"With the rapid rise in demand for compelling visual content across industries, there has never been a better time for our two businesses to come together," CEO Craig Peters said in a statement. Peters will retain his role as CEO and oversee the combined company.
The deal is expected to generate annual cost synergies between $150 million and $200 million by the third year and to improve earnings and cash flow by year two.
Shutterstock shareholders can opt to receive $28.85 a share in cash for each share owned, 13.7 shares of Getty common stock for each share owned, or a combination of 9.2 Getty shares plus $9.50 in cash for each share owned.
Shutterstock jumped 42% to $42.72.
Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com
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January 07, 2025 07:12 ET (12:12 GMT)
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