Getty board unanimously opposed editorial sale requirement
Getty Images delivered a written notice to Shutterstock on Tuesday terminating the merger agreement, according to a company filing. The deal, valued at $3.7 billion, was announced last year as part of a plan to create a visual content giant.
Britain’s Competition and Markets Authority had approved the transaction following an investigation, but only on the condition that Shutterstock’s editorial business be sold to an approved buyer. The regulator was concerned that the combined company would result in a substantial lessening of competition, leading to reduced choice and higher prices for U.K. media outlets.
Getty’s board voted unanimously last week against proceeding with the deal if it required the sale of Shutterstock’s editorial business, the filing said. The company’s decision to terminate the merger came after it determined it did not want to comply with the regulator’s key condition. The deal was announced last year.