Getty Images said on Wednesday that it will terminate its merger agreement with Shutterstock after the U.K. Competition and Markets Authority set conditions tied to the supervision of Shutterstock’s Editorial business. The company announced after market close that it will not advance with the CMA-supervised sale of the Editorial division, which includes the Rex Features, Splash News, and Backgrid brands.
Getty said it intends to terminate the merger agreement on July 6 - the second extended end date set by the CMA - assuming the regulator’s requirements remain unchanged. The transaction was first announced in January 2025.
In connection with the planned termination, Getty Images said it will redeem $628.4 million of 10.5% senior secured notes that mature in 2030. The company added that it will review strategic financing alternatives following the redemption.
Market analysts at Citi maintained a neutral rating on Getty Images following the announcement. In their assessment, Citi indicated the decision to walk away from the Shutterstock deal appears to stem from relatively low demand for Shutterstock’s Editorial business. Citi further said it expects Getty Images’ management to return focus to the company’s core strategy: expanding and licensing its digital asset library, increasing its subscription mix, and delivering stable operating margins.
Context and next steps
Getty’s statement frames the termination as a response to the regulator’s conditions for the CMA-supervised sale of Shutterstock’s Editorial portfolio. The company has set a definitive termination date tied to the CMA’s second extension and has disclosed a specific plan to address outstanding debt via redemption of secured notes due in 2030. Management also signaled a review of financing options as part of its next moves.
Assets involved
- Shutterstock Editorial business - includes Rex Features, Splash News, Backgrid
Analyst view
Citi’s maintained neutral stance highlights that, in the bank’s view, market demand for the Editorial arm was limited and that Getty’s management will likely re-emphasize licensing, subscription growth, and margin stability.