Getty scraps its $3.7bn Shutterstock merger after a UK regulator won’t budge
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Getty Images will terminate its merger with Shutterstock, the company announced this week. Its board unanimously voted to walk away after the UK’s competition regulator attached a condition it would not meet. The planned merger, first reported by the Wall Street Journal, was set to end on July 6th, unless circumstances change.
A $3.7bn deal unravels
The merger, announced in January 2025, aimed to combine Getty’s picture and video wire service with Shutterstock’s library of some 450 million images, creating a "merger of equals" under Getty CEO Craig Peters. The firms projected $150-$200mn in cost savings within three years.
A US green light is not enough
While American regulators approved the merger unconditionally, Britain’s Competition and Markets Authority (CMA) attached a condition: Shutterstock had to sell its global editorial business, including Backgrid and Splash celebrity photo agencies. The CMA argued that without this move, the deal would reduce competition, potentially increasing prices for British media outlets.
“Not required” responded Getty, “under the merger terms.” Its board chose to abandon the deal rather than accept the UK regulator’s condition.
Investors react, rivals adapt
Shutterstock shares fell approximately 30% in after-hours trading upon the news. Getty plans to redeem a tranche of senior secured notes and hire an advisor to explore financing options if the deal falls through.
AI threatens traditional image licenses
Both Getty and Shutterstock face a rapidly evolving threat from AI image generators that produce pictures on demand for minimal cost. Joining forces was seen as a way to cut costs and defend a shrinking market, but now that answer is gone.
The UK regulator’s increasing clout
The merger’s collapse highlights the growing power of the CMA over global tech deals. It follows several high-profile interventions, including forcing Google to implement new conduct rules and requiring Meta to sell Giphy in 2021.
“A US green light is no longer enough," notes the article.
The CMA is currently reviewing Paramount’s proposed takeover of Warner Bros Discovery, raising questions about its stance on even larger media deals.