Getty Images terminated its planned $3.7 billion merger with Shutterstock after the United Kingdom’s Competition and Markets Authority (CMA) demanded the sale of Shutterstock’s editorial business as a condition for approving the deal. Getty’s board unanimously opposed divesting this key segment and decided to call off the merger if no alternative solution emerged by early July.

This regulatory setback raises significant doubts about the future integration of these two major players in the visual media industry. Shutterstock’s shares plummeted nearly 30% in after-hours trading following the announcement, reflecting investor skepticism about the deal’s collapse. Earlier this year, the U.S. Department of Justice had already cleared the merger, signaling a stark contrast in regulatory approaches between jurisdictions.

The companies initially announced their intent to merge over a year ago, aiming to create a leading image and video content provider valued at $3.7 billion. The merger was positioned as a strategic response to growing competition from artificial intelligence and digital content platforms. Under the plan, the combined entity would operate under the name Getty Images Holdings, Inc., with Getty’s CEO Craig Peters slated to lead the new company.

Peters had described the merger as a transformative opportunity to bolster financial strength, expand content offerings, improve event coverage, and deploy innovative technologies to serve customers better. Shutterstock’s CEO Paul Hennessy shared this optimistic view, emphasizing the potential to broaden their creative library and diversify product offerings.

However, the CMA’s requirement to divest Shutterstock’s editorial arm, which generates significant revenue and strategic value, proved a dealbreaker. Getty’s board voted unanimously against this condition, prioritizing the integrity and future growth prospects of the combined business over the merger itself.

This development underscores the increasingly complex and fragmented regulatory environment facing large media consolidations globally. While antitrust authorities in the United States approved the union, the UK regulator’s stance highlights different concerns around market competition and content control.