By Connor Hart

Shares of Shutterstock declined a day after the company said it would merge with rival Getty Images as it named GameStop's former head to serve as its chief marketplace officer.

The stock retreated 10% to $30.94 in afternoon trading Wednesday. The shares, which have tumbled about 37% in last the last 52 weeks, closed up 15% on Tuesday.

Shutterstock said it has hired Matt Furlong to help shape the strategy, operations and growth of the stock-photo company's marketplace division, which houses its individual-user products and solutions. Furlong will also ensure that business goals across the company's brands are aligned, and oversee the global success team, the company said.

Furlong most recently served as chief executive of GameStop. Previously, he held positions at Amazon.com and Procter & Gamble.

Furlong's appointment comes after Getty Images Holdings and Shutterstock on Tuesday announced a $3.7 billion merger, which the companies said would help meet booming demand for licensed images and videos.

Shares of Getty Images fell 17% in Wednesday trading.

After the deal closes, Getty shareholders will own about 54.7% of the combined company, while Shutterstock shareholders will own the remaining 45.3%. The newly formed company, which will retain the Getty name, will be able to offer a more expansive library of visual content for users, as well as a way to synchronize in-house investments in AI tools, according to the companies.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

January 08, 2025 15:04 ET (20:04 GMT)

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