Getty Images formally notified Shutterstock on Tuesday that it is abandoning the proposed $3.7 billion merger between the two companies, citing its unwillingness to meet a condition set by the United Kingdom’s antitrust authority.
In an official filing, Getty confirmed it had “delivered a written notice to Shutterstock terminating the Merger Agreement,” a deal that had been unveiled last year with the goal of forming a major powerhouse in the visual content industry.
Britain’s Competition and Markets Authority had given the merger its approval following a review, but only under the condition that Shutterstock’s editorial division be offloaded to an approved third-party buyer. The regulator expressed concern that allowing the two companies to combine without that requirement would significantly reduce competition, ultimately leaving UK media outlets with fewer options and higher costs.
Getty’s board took a unanimous vote last week to walk away from the transaction entirely rather than agree to divest Shutterstock’s editorial operations.
According to the CMA, both companies provide licensing for a wide range of content — including photographs, illustrations, music, and video footage — to major British media organizations, advertisers, publishers, designers, and small and medium-sized businesses in the creative sector.
Following the news, Getty Images shares dropped 6.8% in morning trading, while Shutterstock shares declined 2.4%.
