The $3.7 billion tie-up was abandoned after Getty rejected a U.K. antitrust condition requiring Shutterstock to sell its editorial business, despite the deal clearing review with remedies.
Getty Images has ended its planned $3.7 billion merger with Shutterstock after deciding not to accept a U.K. antitrust condition that would have required Shutterstock to divest its editorial business. Getty said it sent Shutterstock written notice on Tuesday terminating the merger agreement, and disclosed that its board had unanimously voted last week against proceeding if that sale was required. Britain’s Competition and Markets Authority had approved the transaction only on condition that the editorial unit be sold to an approved buyer, citing concerns the combined company could reduce choice and raise prices for U.K. media outlets. Getty shares fell 6.8% in morning trading, while Shutterstock shares dropped 2.4%.