Shutterstock Shares Plunge Nearly 30% After Merger With Getty Is Called Off

Getty Images and Shutterstock are calling off their $3.7 billion merger after hitting regulatory roadblocks. Investors aren't cheering the news. In a Tuesday regulatory filing, Getty (GETY) that the U.K.'s Competition and Markets Authority determined the new Getty would be required to sell off Shutterstock's (SSTK) editorial business to get the deal approved. Getty said its board decided not to sell the division and will abandon its merger plans. Shutterstock shares plunged 29% to $9.90 Wednesday following the news, marking their lowest close since their 2012 debut. Getty shares dropped more than 10% to 77 cents. Why This Matters to Investors Wednesday's tumble suggests investors are disappointed by the move and less confident in the companies individually than they were about the combined firm. The companies first announced the deal in January 2025, calling the transaction a merger of equals that would see Shutterstock shareholders get the option to receive cash, shares of the new Getty, or a combination of the two. At the time, the companies said the deal would allow the combined company to invest more in new offerings like 3D imagery and generative AI tools. The U.S. Department of Justice cleared the deal to proceed back in February. Since the day the deal was announced, both Getty and Shutterstock shares have lost around 70% of their value amid worries that the spread of AI image creation tools could reduce demand for stock photos in the long term.