Over the past few days, it hasn’t been hard to imagine reaping gains on photography services provider Getty Images (GETY -0.53%). After all, the company’s stock was a hot item on the market, thanks to a well-received deal to merge with a peer. According to data compiled by S&P Global Market Intelligence, as of late Thursday afternoon, the shares were up by more than 13% week to date.
Merger overwhelmingly approved
On Tuesday, photo-sharing site operator Shutterstock announced its shareholders had approved — by a large majority — their company’s pending merger with Getty Images. The vote was roughly 82% in favor of the move.
Image source: Getty Images.
In its press release, Shutterstock wrote that “The combined company will be well-positioned to meet the ever-changing needs of customers through combined investment in content creation, event coverage, and product and technology innovation.”
The cash-and-stock deal was originally agreed at the start of this year, and although it’s been described as a “merger of equals,” the Getty Images name will be retained for the combined entity. Also, current Getty Images stockholders will hold nearly 55% of the new business, according to rough calculations.
Not that many investors in either company seem to mind — Shutterstock’s equity also popped on news of that shareholder vote.
Insider divestments
Subsequent to the Shutterstock poll, several insiders in both companies sold off some equity holdings as if to validate the merger and its price. Among these individuals was Getty Images’s senior vice president of e-commerce, Daine Weston, who unloaded some of his company’s class A common stock, and Shutterstock director Deirdre Bagley, with a sale of 9,700 restricted stock units.
