By Elias Schisgall
Getty Images plans to terminate its merger agreement with Shutterstock after a U.K. regulator said the latter company must sell its editorial business in order for the merger to be approved.
Getty said Tuesday that the U.K. Competition and Markets Authority conditioned its clearance of the merger of equals on the sale of Shutterstock's editorial business--a condition Getty said it wasn't required to accept under the merger agreement.
Its board voted not to proceed with a process of selling Shutterstock's editorial business and instead terminate the merger agreement on July 6, assuming the situation doesn't materially change by then, according to a Tuesday filing with the Securities and Exchange Commission.
The development casts doubt on whether the long-awaited merger between the two companies will come through. The deal was announced in January 2025 and received clearance from the Justice Department this April.
Shares of Shutterstock plunged 30%, to $9.81, in after-hours trading Tuesday. The stock closed down 1.3%, at $13.95, and has slipped 27% this year.
If the merger agreement is terminated, Getty said it plans to redeem its 10.5% senior secured notes due 2030. The company also plans to retain a financial adviser to consider strategic financing alternatives.
Write to Elias Schisgall at elias.schisgall@wsj.com