Shutterstock Inc Sinks: Competitor In Deal With Adobe Systems Inc.

Shutterstock Inc.

was off more than 13 percent Friday after its competitor Fotolia agreed to be acquired by Adobe Systems Inc.

. Adobe said Thursday the $800 million deal will provide the 3.4 million customers of its Creative Cloud service with the ability to purchase images and videos. The service includes Adobe's Photoshop program. Fotolia, launched in 2004 and owned by Kohlberg Kravis Roberts, will also continue to be run as a stand-alone stock image service, Adobe said. Shutterstock, which launched in 2003, counts Fotolia among its online competitors in the marketplace for images, along with iStockphotos and Dreamstime, both privately held. Shutterstock says it also competes with traditional stock photo agencies including Corbis Corp. and Getty Images as well as Web sites like Google Images and Flickr. Shutterstock believes the total market for digital images will be worth $13 billion by 2016. Shutterstock's 2013 revenue was $235.5 million. Digital media accounted for about 65 percent of Adobe's 2013 revenue of $4.06 billion. Shuterstock closed Friday at about $62.51 a share, down $9.16. t