Getty Images to Terminate $3.7B Shutterstock Merger Over UK Regulator Demands

Getty Images announced plans to terminate its $3.7 billion merger agreement with Shutterstock after the UK Competition and Markets Authority required Shutterstock to sell its editorial business as a condition for clearance. Getty's board voted unanimously against the sale and will end the agreement on July 6, per SEC filings. The merger had already been approved by the US Department of Justice in February. Following the news, Getty's stock fell nearly 8%, while Shutterstock's stock dropped about 30% on the day and is down 48% year-to-date. Both companies face competitive pressure from generative AI imagery in the stock photo market. Luke Stillman of Madison and Wall noted that without the merger's scale, the outlook for each company looks more difficult.