In focus: Getty and Shutterstock merger gets CMA probe
The $3.7bn (£2.7bn) merger between Getty Images and Shutterstock is to be the subject of an in-depth probe from the UK’s competition watchdog after ‘substantial concerns’ were flagged.
The deal, which was first announced in January, had already attracted the eye of the Competition and Markets Authority (CMA) in June but will now be looked into in greater detail.
In a new filing, the CMA said the deal “may be expected to result in a substantial lessening of competition within a market or markets in the United Kingdom”.
As a result, the watchdog has referred it for an in-depth, phase two investigation “unless the parties offer an acceptable undertaking to address these competition concerns”.
The CMA said: “The evidence indicates that the supply of editorial content is concentrated, and that Getty Images is the clear market leader.
“No other supplier is of a similar size or has such a broad editorial offering.
“Shutterstock, while significantly smaller and somewhat differentiated in its offering, is one of the few material alternatives to Getty Images.
“Shutterstock is seen as a particularly good alternative to Getty Images in entertainment and archive content.
“Besides Shutterstock, competition comes primarily from a small number of newswire services, including PA Media/Alamy, Associated Press, and Reuters, whose offerings also tend to be somewhat differentiated from the parties’ offerings in terms of their commercial models as newswires and their content coverage (eg focus on news).
“The evidence indicates the merged entity will face limited other constraints.
“Other suppliers of editorial content tend to specialise in filling niche content gaps.”
Getty eye cost savings and boosted content
At the time the deal was announced, Getty Images said the merger was expected to deliver $150m (£199m) to $200m (£159m) in annual cost synergies within three years and to be accretive to earnings and cash flow by year two.
Getty also pledged, along with Shutterstock, to deliver cost savings, boost content offerings and expand innovation in the AI age.
In June, Shutterstock’s shareholders approved the merger with 82 per cent voting in favour.
Speaking then, Shutterstock’s chief executive Paul Hennessy, said: “We are very pleased that our stockholders recognise the compelling rationale of this transaction and look forward to the successful completion of our merger with Getty Images.
“Our complementary strengths will allow us to better serve customers while also delivering exceptional value to our partners, contributors and stockholders in a fast evolving and competitive environment.”
It had previously been expected that the deal would close in the second half of 2025.