Getty Images' US$3.7 billion tie-up with Shutterstock Inc (NYSE:SSTK) has fetched backing from Wedbush analysts, despite uncertainties around how much the former will pay. Wedbush reiterated an ‘outperform' rating and US$7.70 share price target for Getty in a note following Tuesday's news of the merger.
Getty shareholders will own about 54.7% of the combined company, which will retain the Getty name. Shares of both companies surged on the news.
Seattle's Getty Images is acquiring Shutterstock to create a business worth approximately $3.
Truist reiterated a Buy rating on Shutterstock (SSTK) after the announced merger with Getty Images (GETY). The firm believes the merger, once finalized, will bolster the combined company's competitive positioning amid growing AI-based competition, giving it more pricing power, a richer library of content for enterprise customers and for genAI platforms to train their models on. Furthermore, the combination provides contributors substantially greater opportunities across products and content types to reach over 1.4M pro-forma annual subscribers and customers in over 200 countries, the analyst tells investors in a research note. The firm sees the merger as a positive for the combined entity and in the best interest of Shutterstock shareholders longer-term. Shutterstock + Getty Images +0.625 (+24.37%)
Getty Images (NYSE:GETY) and Shutterstock Inc (NYSE:SSTK) have announced they have entered into a merger agreement to create a single visual content company valued at $3.7 billion. The combined company will be named Getty Images Holdings and will continue to trade on the New York Stock Exchange under the ticker symbol “GETY.
Getty Images is buying Shutterstock to create a $3.7 billion visual content company.
Getty Images and Shutterstock agreed to a merger, creating a more formidable competitor for Adobe as generative AI shifts the landscape. The post Getty Images To Merge With Shutterstock For 3 Big Reasons; Adobe Dips appeared first on Investor's Business Daily.
News of the merger sent Getty stock surging by nearly 60% in pre-market trading on Tuesday. The stock was selling at $2.57 a share on Monday.
Getty Images has announced plans to merge with its rival Shutterstock in a cash-and-stock deal. The combined entity is expected to be valued at $3.7 billion based on yesterday's closing share prices.
Getty Images will merge with rival stock photography service Shuttershock in $3.7 billion deal.
The deal is expected to generate annual cost synergies of $150 million to $200 million by year three and to boost earnings and cash flow by year two.
Getty Images Holdings is exploring a merger with its rival Shutterstock , Bloomberg News reported on Friday, citing people familiar with the matter.