By Connor Hart
Getty Images has officially called off its merger with Shutterstock, about a week after the deal was dealt a blow by a U.K. regulator.
Getty on Tuesday delivered a written notice to Shutterstock terminating their planned tie-up, which was first announced in January 2025 and received clearance from the Justice Department in April.
The $3.7 billion deal would have created a visual-content company able to offer a more expansive library to users, helping meet booming demand for licensed images and videos as artificial intelligence disrupts the business of content creation.
Getty's stock slipped 1.7%, to 90 cents, in premarket trading. Shares of Shutterstock, meanwhile, ticked up 1% to $9.29.
The termination came after Getty last week said that its board voted to not proceed with the deal if it meant selling Shutterstock's editorial business--a condition required by the U.K. Competition and Markets Authority.
"The decision by Getty to abandon its merger with Shutterstock is ultimately a commercial choice," said Margot Daly, chair of the independent inquiry group that led the CMA's investigation of the deal.
The inquiry group found that a loss of competition between the two businesses would reduce choice for U.K. media outlets and could lead to higher prices. Shutterstock provides one of the few meaningful alternatives to Getty, the market leader for editorial content in the region, the CMA said.
Still, the CMA cleared the merger on the condition that the companies sold Shutterstock's editorial business. The companies previously said they would divest the business in order to address concerns, though Getty would later walk back on the offer.
Following the termination of the agreement, Getty said it will redeem its 10.5% senior secured notes due 2030.
Write to Connor Hart at connor.hart@wsj.com