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Stock-Image Deal Scrapped Over Editorial Business Sale
1 Jul
Summary
- Getty Images ended its merger with Shutterstock.
- UK regulator demanded Shutterstock sell its editorial business.
- The canceled deal was valued at $3.7 billion.
Getty Images announced on Tuesday that it has ended its planned merger with Shutterstock. The collaboration, initially agreed upon last January, aimed to establish a $3.7 billion entity in the licensed visual content sector, prepared for the artificial intelligence era.
The merger's collapse was precipitated by the UK's Competition and Markets Authority. In May, the authority gave its conditional approval, stipulating that Shutterstock must divest its editorial division. This condition was imposed to address concerns regarding the supply of news content within the United Kingdom.
Following the announcement, Getty Images experienced a substantial increase in its stock value, rising approximately 26% in extended trading. Conversely, Shutterstock's shares fell by about 14%.
