Jim Cramer is Watching These 8 Stocks

3. Getty Images Holdings, Inc. (NYSE:GETY)

Number of Hedge Fund Holders: 4

While discussing Getty Images Holdings, Inc. (NYSE:GETY) and Shutterstock, Inc. merger, Cramer quipped that the company is buying Shutterstock.

“Next, early yesterday morning, we learned that Getty Images in Shutterstock, two of the leading purveyors of stock photos and videos, are joining forces in a merger of equals. Of course, in reality, there’s no such thing. Getty’s buying Shutterstock and their shareholders will own 55% of the combined company. This one’s pretty straightforward. You got two major players in the same industry combining to give themselves a lot more leverage versus their customers. Something they need in this age of AI-generated content.”

Cramer mentioned that when reviewing the transactions from early January, while some might have faced opposition from Biden’s more ideologically driven regulators, the majority of them appear reasonable and well-founded.

“Getty Images and Shutterstock. Now they’re fighting for their life in a world where generative AI systems can create images from simple text prompts. They’ll certainly be stronger together and they’ll be in a better position to negotiate with the software developers who want to license their photos to train their AI models. By the way, they’re also gonna benefit from widespread adoption of the latest NVIDIA platform, Blackwell, which works wonderfully with video.”

Getty Images (NYSE:GETY) provides creative and editorial visual content through platforms, offering a range of products from stock photos and videos to music licensing and digital asset management services. On January 7, the company announced a merger agreement with Shutterstock, aiming to combine its strengths in a transaction that will create a premier visual content company.

The merger, which is expected to have an enterprise value of approximately $3.7 billion, will retain the name Getty Images Holdings, Inc., and continue to trade under the ticker symbol “GETY” on the New York Stock Exchange. The combined company will offer an expanded content library. The merger is expected to strengthen the financial profile of the new entity, enabling further product investment and innovation in an increasingly competitive market.

Craig Peters, Getty Images (NYSE:GETY) current CEO, will lead the new company, which is projected to generate nearly $2 billion in annual revenues. The transaction is expected to result in up to $200 million in cost savings within three years after its completion. Getty investors will hold about 54.7% of the combined company, while Shutterstock stockholders will own the remainder.