DOJ Puts Getty-Shutterstock Merger Under The Microscope, Retail Concern Rises
Getty and Shutterstock announced early January a deal to combine in a merger of equals.
Shares of Getty Images Holdings, Inc. (GETY) and its New York-based rival Shutterstock, Inc. (SSTK) could be in the spotlight on Thursday as the companies disclosed a second request from the Department of Justice (DOJ) regarding their proposed merger.
The companies said they have each received a “Request for Additional Information and Documentary Material,” called “Second Request” from the DOJ in connection with the proposed transaction.
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The Hart-Scott-Rodino Act, commonly called the antitrust Act, provides the DOJ and the Federal Trade Commission 30 days to pursue an initial investigation into transactions above a certain threshold to assess their legality.
If the FTC or DOJ seeks additional request, aka “Second Request,” the law forbids merging companies from consummating the deal until they comply with the additional request.
Getty and Shutterstock, two of the biggest publicly-traded creative and editorial visual content solutions providers, announced early January a deal to combine in a merger of equals. The combined company will have an enterprise value of $3.7 billion and will be called Getty Images Holdings.
Following the transaction, Getty Images and Shutterstock shareholders would own 54.7% and 45.3% of the combined company, respectively.
Since the deal announcement, Getty Images stock has shed 46% and Shutterstock is down by a similar percentage as well. Part of the weakness could be blamed on the broader market downturn amid the lingering economic uncertainty.
The companies said the waiting period now extends until 30 days after they have substantially complied with the request.
“Getty Images and Shutterstock intend to continue working cooperatively with the DOJ and other non-US regulators to obtain regulatory clearance for the proposed merger as expeditiously as possible,” they said.
On Stocktwits, retail sentiment toward Getty Images stock remained ‘bearish’ (39/100) and the message volume on the stream remained ‘extremely low.’
A watcher flagged the news as bearish for both companies.
On the other hand, retail remained ‘bullish’ (63/100) on Shutterstock stock, although the message volume tapered off to ‘normal’ levels.
The proposed transaction is also subject to approval by Shutterstock shareholders as well as other customary closing conditions.
The companies continue to expect the deal to close in the second half of 2025.
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