Shares of Shutterstock (NYSE:SSTK) and Getty Images (NYSE:GETY) advanced on Monday after U.S. regulators completed their review of the companies' proposed merger. Shutterstock rose about 5% while Getty Images climbed roughly 7% following the announcement that the Department of Justice cleared the transaction.
The companies said the DOJ's examination concluded and the statutory waiting period under the Hart-Scott-Rodino Act expired without the imposition of conditions. That outcome represents a major regulatory step for the planned combination of two leading providers in the stock imagery and content licensing market.
Executives from both firms issued statements emphasizing the strategic rationale for the deal. Getty Images' CEO noted the importance of the DOJ decision in validating the transaction and signaled a focus on strengthening the business.
"We are very pleased with the DOJ’s decision in recognizing the merits of this transaction," Craig Peters, CEO of Getty Images, said. "With today’s DOJ clearance, we take a significant step forward in bringing together these two companies and unlocking opportunities to strengthen our financial foundation and invest in our future."
Paul Hennessy, CEO of Shutterstock, added: "By combining our complementary strengths, we will be able to deliver even better service and support for customers and contributors over time."
The companies have said the merger is expected to produce meaningful cost and investment efficiencies, noting anticipated synergies across selling, general and administrative expenses and capital expenditures once the deal is complete.
Regulatory work, however, is not finished. In the United Kingdom, the Competition and Markets Authority issued an interim report on February 19 as part of an ongoing Phase 2 review. Both firms said they remain engaged with the CMA as it continues its assessment ahead of a final decision scheduled by April 19.
Getty Images and Shutterstock expressed hope that the CMA will reach a conclusion consistent with the DOJ and other global regulators, and stated they are continuing efforts to secure the remaining approvals necessary to close the transaction.
Market and sector context
- The immediate market reaction reflected investor approval of the DOJ clearance, with notable share-price gains for both companies.
- The proposed merger targets the stock imagery and content licensing market, with firms citing potential for consolidated services and financial improvement.
- Regulatory reviews in multiple jurisdictions remain part of the closing process.