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Tag: NYSE: GETY

  • Getty Images (GETY) And Shutterstock Seal Definitive Merger Deal

    Getty Images (GETY) And Shutterstock Seal Definitive Merger Deal

    The news of a merger deal with Shutterstock caused shares of Getty Images Holdings, Inc. (NYSE: GETY) to jump 35.36% to $3.48. The two companies will combine as a “merger of equals,” becoming Getty Images Holdings, Inc., which will remain listed on the New York Stock Exchange with the symbol “GETY.” The partnership, which has an enterprise value of over $3.7 billion, intends to establish a leading visual content business.

    Strategic Vision and Benefits

    Customers and contributors alike stand to gain from the merger’s anticipated substantial improvements to the merged entity’s content repository. In order to meet the growing demand for visual material across sectors, Getty Images and Shutterstock plan to combine their resources to embrace more inclusive content, increase event coverage, and make investments in technical innovation.

    Both businesses can better serve donors and consumers while taking advantage of growth potential thanks to this transformative collaboration, which comes at a critical juncture.

    Governance and Leadership

    Eleven people will make up the company’s Board of Directors after the merger, including Peters as CEO and six representatives from Getty Images and Shutterstock. The incumbent chairman of the corporation, Mark Getty, will head the board. Paul Hennessy, the CEO of Shutterstock, will also be heavily involved. 

    Stockholder Considerations

    Shutterstock stockholders have several options for their shares:

    • Cash consideration of $28.85 per share.
    • 13.67 shares of GETY stock per share of Shutterstock stock.
    • A hybrid option that includes $9.50 in cash per Shutterstock share and 9.17 shares of Getty Images stock.

    The aggregate consideration includes $331 million in cash and 319.4 million Getty Images shares. Upon closure, GETY stockholders will hold 54.7% of the combined company, with Shutterstock stockholders owning 45.3%. The merger is subject to proration and adjustments to ensure equitable distribution.

    Future Outlook

    By utilizing complementary capabilities to spur innovation and quicken growth, the merged business is poised to revolutionize the visual content sector and provide long-term value for investors, contributors, and consumers.

  • Getty Images (GETY) Stock Seems Attractive

    Getty Images Holdings Inc. (NYSE: GETY) has once again entered the public markets, after its merger with a special purpose acquisition company (SPAC). As a result, GETY stock has found itself in the spotlight of market participants and traders, each attempting to conduct an appropriate valuation of the company.

    Getty Images’ Market Strength

    Getty Images has established itself in a niche area of the market and has scaled up substantially over the years to allow itself to become heavily profitable. One of the only other players in this space is Shutterstock (NYSE: SSTK), which has also, like Getty, achieved critical mass. This competitive void is extremely advantageous to Getty.

    The company has also established distinct platforms that cater to specific needs in the visual content marketplace, such as Unsplashed, which allows for monetization through an ad-based model, as well as iStock, which targets small customers looking for self-service.

    FY22Q2 Financial Performance

    In its most recent financial results, Getty Images had shown positive results, despite the severe macroeconomic headwinds impacting the digital industry as a whole. In the second quarter of 2022, where many were expecting topline performance to drop, GETY increased its revenue by more than 4% on a year-on-year basis. EBITDA during the same period was even higher than this topline growth. The company further enhanced its liquidity position, with its cash holdings far higher, due to the SPAC merger. Most interesting of the quarters’ metrics were total purchasing customers and video collection, which were each up 12.6% and 22.2% respectively.

    Conclusion

    After its re-entry into public markets, GETY stock is now closely watched by both bears and bulls. Given its market position and performance-related metrics, Getty clearly has a number of highly attractive features, that investors can latch on to.