Banding together to tackle AI! After the advertising, image giants are brewing a merger, with Shutterstock and Getty Images' stock prices both rising

With the deepening application of AI technology across various industries, several industry giants are facing challenges. Following the advertising sector, image giants are also beginning to consider mergers to cope with the impact of AI on the content creation market.

Early this morning, according to sources cited by Bloomberg, the globally renowned image library Getty Images is evaluating the possibility of merging with competitor Shutterstock. Following the announcement, both Shutterstock and Getty Images saw their stock prices rise, with Getty's stock price increasing by as much as 32%, marking the largest gain since 2023, and ultimately closing up 13.27%.

This potential merger arises from the significant challenges facing the image industry. The rapid development of AI is disrupting the content creation industry, while the widespread use of smartphone cameras has also diminished the value of stock photos. Over the past year, Getty and Shutterstock's stock prices have fallen by 56% and 37%, respectively, and this merger would help them better respond to market changes.

However, despite the merger news driving stock prices up, the stock prices of both companies remain well below their levels from a year ago, reflecting investors' vigilance regarding the threats posed by AI.

Moreover, the merger also faces regulatory risks. Although the new Trump administration may adopt more lenient regulatory policies, industry experts remain cautious about the deal, which could be scrutinized for antitrust reasons. Sources also revealed that discussions regarding the merger are ongoing, and Getty may decide not to proceed with the transaction.

It is noteworthy that just a month ago, leading American advertising companies Omnicom and Interpublic were reported to be in talks for a merger deal worth over $30 billion, aimed at addressing the impact of data, technology, and artificial intelligence on the advertising industry.

Analysts point out that the traditional creative-centered advertising model is being replaced by data-driven digital advertising, with 71% of global advertising spending expected to flow to digital platforms.

The introduction of AI tools is causing significant disruption across the entire advertising industry, forcing all advertising companies to invest hundreds of millions of dollars in developing AI tools to address the survival threats posed by this new technology