(April 16): The UK, which is scrutinising Getty Images Holdings Inc deal with Shutterstock Inc to create a US$3.7 billion firm, proposed that Shutterstock sell its entire editorial business to get approval for the acquisition.
The Competition and Markets Authority (CMA) is consulting on the proposals after finding that that the purchase would dent competition and adversely impact the choices for media outlets in the UK. Getty said it disagreed and plans to meet with the regulator.
“We’re minded to protect competition by clearing the deal subject to Shutterstock’s editorial business being sold to an approved buyer,” Margot Daly, chair of the CMA’s inquiry group leading the investigation said in a statement. The CMA’s conclusions are not final and a decision is due by June 14.
Getty Images plans to pay US$331 million in cash and 319.4 million of its own shares, with its shareholders owning 54.7% of the combined company. The deal will bring together two of the biggest providers of licensed visual content as artificial intelligence upends the content-creation market and smartphone cameras dilute the value of stock photos.
“We disagree with the provisional conclusions set out in the CMA’s interim report on remedies,” a Getty Images spokesperson said in a statement. The merger will not have an adverse impact on competition in the supply of editorial content in the UK and the company will provide more evidence to the regulator, according to the spokesperson.
Shutterstock’s spokesperson didn’t immediately respond to an email for comment.
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