Deal collapse follows dispute over requirement to sell Shutterstock’s editorial business to protect competition
Getty Images (GETY) has officially ended its planned $3.7 billion merger with Shutterstock (SSTK) after deciding not to move forward under conditions required by the United Kingdom’s competition regulator.
Getty announced Tuesday that it had delivered written notice to Shutterstock terminating the merger agreement, which was originally designed to create a global visual content powerhouse combining two of the largest providers of licensed photos, videos, music, and creative assets.
The decision came after Britain’s Competition and Markets Authority (CMA) approved the merger only if Shutterstock sold its editorial business to an approved buyer. The regulator raised concerns that combining Getty and Shutterstock without that sale could significantly reduce competition, potentially leading to fewer options and higher prices for U.K. media organizations and creative businesses.
Getty’s board unanimously voted against completing the transaction if it required separating Shutterstock’s editorial division, ultimately choosing to walk away from the deal.
The CMA said the cancellation was a “commercial choice” by the companies, noting that the proposed sale of Shutterstock’s editorial business had originally been offered by the merging parties as a solution to regulatory concerns.
Margot Daly, who led the CMA investigation, said regulators had been working closely with Getty, Shutterstock, and potential buyers, adding that the process was already in an advanced stage before Getty decided to terminate the agreement.
The collapse of the merger keeps the two visual media companies operating independently in an increasingly competitive digital content market.
