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Shutterstock ($SSTK) and Getty Images ($GETY) are two of the biggest players in the stock photo and video industry, and they announced on January 7th of 2025 that they’re looking to merge. The deal would combine two massive content libraries under one roof, giving the new company around 75% market share in the stock media space.
If approved, the merger is expected to generate $150–$200 million in annual cost synergies within three years, with roughly two-thirds delivered in the first 12 to 24 months.
The combined company would also have nearly $2 billion in annual revenue, improved operating efficiency, and a stronger balance sheet.
Together, they’d be better positioned to expand AI content licensing, accelerate product innovation, and capture more of the high-margin enterprise and editorial markets.
But the deal isn’t final yet. So the big question for investors is: Should you buy Shutterstock stock to play the potential merger upside?
Shutterstock–Getty Images Merger Explained
The proposed merger involves a mix of cash and stock, with existing Shutterstock shareholders set to receive a stake in the combined company (NewCo). The deal was announced in early 2025 and is expected to close later this year if it clears regulatory hurdles.
On paper, the strategic fit is compelling. The combined business would have unmatched scale, pricing power, and better positioning to monetize content in the AI era. Management believes the merger could lead to meaningful cost savings and stronger growth.
What Happens If the Shutterstock Merger Closes?
If the deal is approved, Shutterstock shareholders will receive a mix of cash and Getty Images stock, with three options available at closing:
- All-cash option: $28.85 per share in cash
- All-stock option: 13.67237 shares of Getty Images stock per SSTK share
- Mixed option: $9.50 in cash plus 9.17 shares of Getty Images stock per SSTK share
However, these elections are subject to proration, meaning shareholders won’t necessarily receive their preferred option in full.
The final allocation will be adjusted so that, in aggregate, Getty Images pays $9.50 in cash and issues 9.17 shares of stock per Shutterstock share. This structure ensures consistent deal economics across all shareholders.
Based on current terms, the total value per share of any of the options shareholders pick is estimated to exceed $25/share, which represents more than 25% upside from Shutterstock’s current trading price of around $20.
What If the Merger Falls Through?
Even if the deal doesn’t happen, SSTK may still be worth a look. The company trades at just 4.6x forward earnings and offers a dividend yield of over 7%.
Revenue has started to grow again, thanks in part to Shutterstock licensing its massive image library to tech companies building and training AI models. These deals have created a new, high-margin revenue stream at a time when core stock photo demand has been under pressure.
There’s uncertainty about how long that AI-driven growth will last once foundational models are sufficiently trained. It’s also unclear how pricing will evolve as more providers enter the market. But in the near term, these AI partnerships have boosted revenue and profitability, providing valuable runway.
If the merger doesn’t go through, it still looks like Shutterstock is undervalued today. Based on mid-case assumptions, Shutterstock could deliver 86% total returns (15% annually) by 2029, with upside driven by modest revenue growth and stable margins from today’s depressed valuation.
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Is Shutterstock a Good Merger Arbitrage Opportunity?
At current prices, the market seems skeptical that the deal will close, especially after the DOJ issued a Second Request, extending its antitrust review.
But that skepticism creates an opportunity: if the deal goes through, there’s substantial upside. If it doesn’t, you’re left with a business trading at ~5x earnings with stable cash flow.
For investors comfortable with merger risk, Shutterstock offers an interesting risk/reward setup. Just be prepared for a bumpy ride until regulators make their final call.
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FAQ Section:
How likely is the Shutterstock–Getty merger to be approved?
The deal faces regulatory risk due to the companies’ combined ~75% market share. The DOJ’s Second Request signals deeper scrutiny, but it doesn’t guarantee the deal will be blocked. Outcomes often depend on how convincingly the companies argue there’s still competition in the space.
What is a DOJ Second Request, and why does it matter?
A DOJ Second Request is part of the antitrust review process that requires both companies to submit more detailed information about the deal. It often delays the timeline and increases the chance of regulatory intervention, especially in industries with high market concentration.
Has Shutterstock done other acquisitions before?
Yes. Shutterstock has made several acquisitions in recent years, including Pond5 in 2022 (for video content) and TurboSquid in 2021 (for 3D assets). The company has shown it’s comfortable using M&A to expand its content library and capabilities.
How does Getty Images compare to Shutterstock?
Getty Images is known for premium editorial and commercial photography, especially in news and sports. Shutterstock has a broader self-service platform and more accessible pricing. The merger would combine Getty’s brand strength with Shutterstock’s distribution and scale.
How are investors reacting to the deal so far?
In June 2025, approximately 82% of Shutterstock’s issued and outstanding shares voted in favor of the merger with Getty Images, showing strong confidence in the combination.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
