Shutterstock Completes Acquisition of Envato

Rhea-AI Summary

Shutterstock (NYSE: SSTK) has completed its acquisition of Envato, a leader in digital creative assets and templates. This strategic move significantly expands Shutterstock's offering and market reach. Key highlights include:

- Addition of Envato Elements, a leading unlimited multi-asset subscription offering
- Expansion into faster-growing audiences like freelancers, hobbyists, and small businesses
- 650,000 new subscribers, more than doubling Shutterstock's subscriber base to 1.15 million
- Increased Content revenue from various digital assets
- Bolstered content library with millions of new assets
- Diversification into new content types including code, web themes, and templates

The acquisition coincides with Envato's new visual brand identity launch, marking a significant milestone in the company's evolution.

Positive

• Acquisition of Envato adds 650,000 subscribers, more than doubling Shutterstock's subscriber base to 1.15 million
• Expands Shutterstock's reach to faster-growing audiences such as freelancers, hobbyists, and small businesses
• Increases Shutterstock's Content revenue from video, audio, graphics, fonts, and templates
• Bolsters content library with millions of new assets across various categories
• Diversifies Shutterstock's offerings into new content types including code, web themes, and templates

Negative

• None.

Insights

Financial Analyst

This acquisition is a strategic win for Shutterstock, particularly in terms of market expansion and revenue diversification. The inclusion of Envato’s 650,000 subscribers significantly boosts Shutterstock's subscriber base, more than doubling it to 1.15 million. This will likely result in a considerable increase in recurring revenues, making Shutterstock's financials more robust. Additionally, the expanded content library bolsters Shutterstock's portfolio, adding diverse digital assets that appeal to a wider audience. This could enhance Shutterstock's competitiveness and open up new revenue streams, particularly in the high-demand sectors of code, web themes and product mock-ups.

From a financial perspective, the acquisition can be viewed positively, as it strengthens Shutterstock’s market position and adds to its revenue base. Moreover, the diversification of content types mitigates risks associated with reliance on specific asset categories, further stabilizing revenue flows.

Market Research Analyst

The acquisition is set to significantly enhance Shutterstock's market presence among freelancers, hobbyists, small businesses and agencies. These segments are characterized by faster growth and diverse needs for high-quality creative content. By integrating Envato’s offerings, Shutterstock is well-positioned to capture a substantial share of this expanding market.

This deal not only doubles the subscriber base but also enriches Shutterstock’s content portfolio with millions of new assets. This extensive library will likely attract more users seeking one-stop solutions for varied digital content needs, from social media posts to professional presentations. Furthermore, the inclusion of Envato’s diverse digital assets, such as fonts and templates, aligns well with the increasing demand for customizable and versatile content in the digital marketing and creative industries.

Tech Expert

Integrating Envato’s diverse content types, including code and web themes, product mock-ups and various templates, significantly bolsters Shutterstock's technological arsenal. This positions Shutterstock to cater to the evolving needs of digital creators and marketers who seek comprehensive and integrated solutions. The expanded library with millions of new assets, including 10 million images and 6 million videos, will enhance the platform’s utility and attractiveness.

Additionally, the launch of Envato’s new visual brand identity signifies a forward-thinking approach and commitment to staying relevant and appealing to modern creatives. This rebranding, in conjunction with the acquisition, presents a fresh and robust image, likely to attract more users and enhance user retention through an improved user experience.

NEW YORK, July 22, 2024  /PRNewswire/ -- Shutterstock, Inc. (NYSE: SSTK), a leading global creative platform offering high-quality creative content for transformative brands, digital media and marketing companies, completed its previously announced acquisition of Envato Pty Ltd. ("Envato"), a leader in digital creative assets and templates.

Strategic Highlights:

• Complements Shutterstock's existing offering with Envato Elements, a leading unlimited multi-asset subscription offering
• Expands Shutterstock's reach within faster growing audiences such as freelancers, hobbyists, small businesses and agencies
• Adds 650k subscribers, more than doubling Shutterstock's subscriber base to 1.15 million
• Increases Shutterstock's Content revenue from video, audio, graphics, fonts and templates
• Bolsters Shutterstock's content library with 10 million images, 6 million videos, 1 million audio clips, 0.5 million templates and 0.2 million graphics & fonts
• Further diversifies Shutterstock into new content types including code & web themes, product mock-ups, fonts and templates (e.g. Slides, PowerPoint, Keynote, WordPress, video, designs for social posts, gaming, podcasts and print-on-demand)
• Deal completion coincides with the launch of Envato's new visual brand identity, currently in a phased rollout across the site, which marks a significant milestone in the company's evolution and commitment to creatives

ABOUT SHUTTERSTOCK
Shutterstock, Inc. (NYSE: SSTK) is a leading global creative platform offering high-quality creative content for transformative brands, digital media and marketing companies. Fueled by millions of creators around the world, a growing data engine and a dedication to product innovation, Shutterstock is the leading global platform for licensing from the most extensive and diverse collection of high-quality 3D models, videos, music, photographs, vectors and illustrations. From the world's largest content marketplace, to breaking news and A-list entertainment editorial access, to all-in-one content editing platform and studio production services—all using the latest in innovative technology—Shutterstock offers the most comprehensive selection of resources to bring storytelling to life.

Learn more at www.shutterstock.com and follow us on LinkedIn, Instagram, X, Facebook and YouTube.

FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking. Examples of forward-looking statements include, but are not limited to, statements regarding the acquisition, guidance, industry prospects, future business, future results of operations or financial condition, new or planned features, products or services, management strategies and our competitive position. You can identify forward-looking statements by words such as "may," "will," "would," "should," "could," "expect," "aim," "anticipate," "believe," "estimate," "intend," "plan," "predict," "project," "seek," "potential," "opportunities" and other similar expressions and the negatives of such expressions. However, not all forward-looking statements contain these words. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially from those expressed or implied by the forward-looking statements contained herein. Such risks and uncertainties include, among others, those discussed under the caption "Risk Factors" in our most recent Annual Report on Form 10-K, as well as in other documents that the Company may file from time to time with the Securities and Exchange Commission.  Factors related to the transactions discussed in this document that could cause actual results to differ materially from those contemplated by the forward-looking statements include: the effects of disruption to our or the target's respective businesses; the impact of transaction costs; our ability to achieve the benefits from the proposed transaction; our ability to effectively integrate the acquired operations into our operations; our ability to retain and hire key target personnel; and the effects of any unknown liabilities. As a result of such risks, uncertainties and factors, Shutterstock's actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. The forward-looking statements contained in this press release are made only as of this date and Shutterstock assumes no obligation to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by law.

 

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SOURCE Shutterstock, Inc.

FAQ

What company did Shutterstock (SSTK) acquire in July 2024?

Shutterstock (SSTK) completed its acquisition of Envato, a leader in digital creative assets and templates, in July 2024.

How many subscribers did Shutterstock (SSTK) gain from the Envato acquisition?

Shutterstock (SSTK) gained 650,000 subscribers from the Envato acquisition, more than doubling its subscriber base to 1.15 million.

What new content types did Shutterstock (SSTK) gain through the Envato acquisition?

Through the Envato acquisition, Shutterstock (SSTK) gained new content types including code, web themes, product mock-ups, fonts, and various templates for presentations, websites, social posts, gaming, podcasts, and print-on-demand.

How does the Envato acquisition expand Shutterstock's (SSTK) market reach?

The Envato acquisition expands Shutterstock's (SSTK) reach to faster-growing audiences such as freelancers, hobbyists, small businesses, and agencies.