Getty Images canceled the deal after Britain’s regulator required the sale of Shutterstock’s editorial business to approve it.
Getty Images abandoned its $3.7 billion acquisition of Shutterstock after refusing to comply with a UK antitrust condition. The Competition and Markets Authority (CMA) had approved the deal only if Shutterstock sold its editorial business to address competition concerns.
The merger, announced last year, aimed to create a dominant visual content provider. The CMA warned the combined entity could reduce choice and raise prices for UK media outlets and advertisers. Getty’s board unanimously rejected the divestiture requirement last week.
Shares of Getty Images dropped 6.8% in morning trading, while Shutterstock fell 2.4%. Both companies license photos, videos, and music to businesses and media firms.