Getty Images voted to terminate its merger agreement with Shutterstock after the U.K.'s Competition and Markets Authority conditioned its approval of the deal on a sale of Shutterstock's editorial business, the company said Tuesday.
The U.K.'s competition regulator conditioned its approval on a sale of Shutterstock's editorial business, a requirement Getty's board rejected
SOPA Images / Getty Images
Getty Images voted to terminate its merger agreement with Shutterstock after the U.K.'s Competition and Markets Authority conditioned its approval of the deal on a sale of Shutterstock's editorial business, the company said Tuesday.
A merger agreement between the two companies was struck in January 2025, with the combined entity carrying a valuation of $3.7 billion. The deal was positioned as a union of two of the largest players in the licensed visual content market.
Citing the extended deadline of July 6, the company said its board voted unanimously to end the merger and decline to pursue any sale of Shutterstock's editorial unit, provided circumstances do not materially shift before July 7. Getty also said it was not required under the terms of the merger agreement to accept the CMA's condition.
According to Reuters, the CMA's inquiry group concluded that keeping Shutterstock's editorial arm under shared ownership would limit options for U.K. media buyers and put upward pressure on prices, given that Shutterstock ranks among Getty's only significant rivals in that market. News agencies such as Reuters and the Associated Press are among Getty's direct competitors in the editorial photo and video market.
Shutterstock stock plunged about 30% in after-hours trading Tuesday. In extended trading, Getty Images shares edged up roughly 1.1% to $0.87. The deal had previously received clearance from the U.S. Justice Department in April, according to The Wall Street Journal.
Should the merger be officially called off, Getty Images noted that a special mandatory redemption would apply to its 10.5% senior secured notes due 2030. Getty's board indicated it would also bring on a financial adviser to evaluate potential strategic financing options going forward.
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