Mikael Cho sold $31K of GETY (indirect holdings)

Getty Images terminated its planned all-stock $3.7B merger with Shutterstock after the UK CMA approved only if Shutterstock divested its editorial business. Getty said its board decided proceeding under those terms wasn’t in its best interests and ended the deal after a July 6 deadline. Both firms face AI image-generator competition; Getty plans a financial adviser to explore financing options.

Getty ended its merger agreement with Shutterstock after the UK CMA had granted conditional approval in May. The CMA required Shutterstock to sell its editorial business to an approved buyer. Getty notified the termination Tuesday; the CMA said it will stop remaining work. The deal had targeted $150m–$200m annual cost savings within three years.

Getty Images (GETY) and Shutterstock (SSTK) called off their $3.7B merger after the UK Competition and Markets Authority said approval would require Getty to sell Shutterstock’s editorial division. Getty’s board declined the sale and will abandon the deal. Shutterstock shares fell ~29% to $9.90; Getty shares dropped over 10% to 77 cents.

Getty Images plans to terminate its $3.7 billion merger with Shutterstock after the UK CMA said approval required Shutterstock to sell its editorial arm. Getty’s board rejected the condition. The deal, agreed in January last year and cleared by the US DOJ, faces a July 6 deadline; Shutterstock shares fell about 30% and Getty also declined.

Getty Images moved to terminate its planned $3.7B merger with Shutterstock after UK competition regulators required Shutterstock to sell its entire global editorial business as a condition for approval. Getty’s board unanimously rejected the conditions and will end the deal after the July 6 deadline. DOJ had cleared the deal unconditionally in the US.

Getty Images terminated its $3.7B merger with Shutterstock after the UK CMA refused approval without major conditions. The CMA required Shutterstock to sell its global editorial business (including Backgrid and Splash). Getty’s board voted to end the deal, citing the condition as unacceptable. DOJ cleared the deal in Feb; Getty also plans new strategic options.