Getty Images has formally terminated its long-planned $3.7 billion acquisition of Shutterstock, a deal that would have created a major visual content giant with an extensive media library.

The decision to call off the merger was announced on Tuesday, following a regulatory hurdle from the UK's Competition and Markets Authority (CMA) the previous week.

Getty Images provided written notice to Shutterstock on Tuesday, ending the merger agreement that was first announced in January 2025 and had already secured approval from the US Department of Justice in April.

The $3.7 billion transaction would have established a large-scale visual content enterprise with an unprecedented library of assets. At a time when artificial intelligence is reshaping the content creation industry and driving surging demand for licensed images and video footage, the combined entity was positioned to better serve market needs.

In pre-market trading, shares of Getty Images fell 1.7% to $0.90, while shares of Shutterstock saw a modest increase of 1% to $9.29.

Last week, Getty indicated that its board would vote to abandon the merger if the CMA mandated the divestiture of Shutterstock's editorial content business. This condition has now led to the formal termination of the deal.

Margot Daly, chair of the independent inquiry group for the merger, stated, "Getty's decision to ultimately walk away was, at heart, a commercial one."

The regulator's investigation concluded that the merger would reduce competition, limiting options for UK media organizations and posing a risk of higher prices. The CMA noted that Getty is the market leader for editorial content in the UK, with Shutterstock being one of the few competitive alternatives.

Despite this, the regulator had offered a conditional approval path, requiring the companies to divest Shutterstock's editorial content business. While both parties initially expressed willingness to sell the business to address antitrust concerns, Getty later reversed its position and refused to accept the divestment requirement.

Following the termination of the merger agreement, Getty Images announced its intention to redeem its 10.5% senior secured notes due in 2030.