Getty Images to Go Private Following Unsuccessful Merger with Shutterstock

Getty Images is preparing to file for bankruptcy and transition to a private entity as part of a restructuring plan after its merger with Shutterstock fell through earlier this year. The company announced it has secured $533 million from the Getty family and an investment firm to reduce its debt and facilitate the move to private ownership, with a prepackaged Chapter 11 process expected to commence in the coming weeks.

The restructuring is projected to be completed by the end of the year, with no expected disruptions for content contributors, partners, customers, or employees worldwide. Once finalized, the company will be fully owned by affiliates of the Getty family and Koch Equity Development. This agreement aims to stabilize the financially troubled platform, which reported over $1.3 billion in debt as of June 30, according to regulatory filings. In September, it was reported that Getty had entered a 30-day grace period after missing interest payments on its unsecured notes.

This development follows Getty’s decision to abandon a $3.7 billion deal with Shutterstock in July due to merger restrictions imposed by a UK regulator, which contradicted a previous decision by the US Department of Justice that had granted the merger “unconditional antitrust clearance.” Both companies are facing increasing competition from generative AI services that allow users to create custom images quickly, bypassing traditional stock image searches and licensing fees. While Getty has its own AI generator, the competitive landscape is challenging, and the company has yet to clearly define its strategy for future growth.

“Getty Images is uniquely trusted around the world as the unparalleled leader in premium visual content,” stated co-founder Mark Getty. “This transformational transaction is underpinned by the strength of the business and the significant growth potential we see ahead.”