Getty Images has abandoned its planned £2.8 billion merger with Shutterstock after the UK's Competition and Markets Authority (CMA) mandated the sale of Shutterstock's editorial business as a condition for approval. The deal, announced in January, would have created a combined entity worth approximately $3.7 billion (£2.8 billion), uniting two of the largest players in the stock imagery and video market.
CMA Raises Competition Concerns
The CMA launched an investigation into the merger, citing fears that the combined business would dominate the market for editorial and stock imagery. In May, the regulator indicated it would approve the deal only if Getty agreed to divest Shutterstock's editorial arm, which supplies content to news outlets. The CMA's inquiry group found that without this disposal, UK media outlets would face limited choices, potentially leading to higher prices, worse commercial terms, and lower quality of imagery.
According to the CMA, stakeholders across the UK media and creative sectors expressed “widespread concerns” about the deal. The News Media Association, whose members publish around 900 UK media titles and rely on licensed imagery, was among those voicing opposition.
Getty Rejects Condition, Terminates Agreement
In a regulatory filing late Tuesday, Getty Images stated it was unwilling to accept the CMA's condition. The company said: “The UK Competition and Markets Authority conditioned its required clearance of the transactions contemplated by the merger agreement upon a sale of Shutterstock’s editorial business. Getty Images is not required to accept that condition under the terms of the merger agreement.” As a result, Getty terminated the merger agreement.
Getty also announced that its board would retain a financial adviser to explore “strategic financing alternatives.”
Market Reaction
Following the announcement, Getty's shares fell 4% in early trading on Wall Street, while Shutterstock's stock plunged 28%. The sharp decline in Shutterstock's value reflects the market's disappointment over the collapsed deal.
Investigation Details
The CMA's probe examined both editorial content—images and videos related to news events—and stock imagery used for commercial purposes. The regulator concluded that the merger would harm competition in both segments, reducing options for customers and potentially increasing costs. The condition to sell Shutterstock's editorial business was designed to preserve competition in the news imagery market.
