Getty Images has moved to terminate its planned $3.7 billion merger with rival Shutterstock after rejecting conditions imposed by UK competition regulators.
The collapse of the agreement shows that approval from US authorities is not always enough to complete a major international deal. Getty’s board unanimously decided not to proceed with the steps required to secure clearance in the UK.
Getty Images and Shutterstock announced the proposed merger in January 2025.
The companies planned to create a larger stock photography business capable of competing with the growing use of AI-generated images.
The combined company would have operated as Getty Images Holdings Inc. Getty CEO Craig Peters described the proposed transaction as “transformational.”
The US Department of Justice granted the proposed merger unconditional antitrust clearance earlier this year.
However, the UK’s Competition and Markets Authority said in May that it would only approve the transaction if Shutterstock sold its entire global editorial business, including its news and celebrity photography agencies.
The regulator concluded that combining the companies without this sale would reduce competition in the supply of editorial images.
It warned that UK media organizations could face fewer choices and higher prices because Shutterstock is one of Getty’s main competitors in the market.
Getty’s board unanimously decided not to continue the process of selling Shutterstock’s editorial division.
The company said it would instead terminate the merger agreement after the extended July 6 deadline, provided there is no material change in the circumstances before July 7.
The decision effectively ends the merger unless the regulatory situation changes before the deadline.
Both Getty and Shutterstock have established partnerships that bring their licensed content into ChatGPT.
Getty recently signed a multi-year display agreement allowing its licensed and watermarked images to appear in OpenAI’s search and discovery features. Shutterstock also launched an app that allows ChatGPT users to discover images, videos, music and sound effects from its collection.
Although AI-generated images have become common across social media platforms, major news organizations have largely continued using traditional licensed photography.
The failed merger also highlights the regulatory risks facing other companies that receive US approval but still require clearance in international markets.
Paramount’s planned acquisition of Warner Bros. Discovery has already received approval from the US Department of Justice but remains under review in the UK and other territories.
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