Getty Images intends to file for bankruptcy and go private as part of a restructuring agreement after its plans to merge with rival stock platform Shutterstock fell through earlier this year. On Monday, Getty announced it had secured $533 million from the Getty family and Charles Koch’s investment firm to cut its debt and take the company private, outlining plans to undergo a prepackaged Chapter 11 process “in the coming weeks.”
The restructuring effort is expected to be wrapped up by the end of this year, with no anticipated impact on content contributors, partners, customers, or employees globally. Once completed, the company will be entirely owned by Getty family affiliates and Koch Equity Development. The agreement serves to rescue the financially struggling platform, which had more than $1.3 billion of debt as of June 30th according to regulatory filings. Bloomberg reported in September that Getty had entered a 30-day grace period for operations after failing to make interest payments on its unsecured notes.
This follows Getty walking away from a $3.7 billion transaction with Shutterstock in July in response to restrictions imposed on the merger by a UK regulator. This upended a decision granted by the US Department of Justice in February, which gave the agreement “unconditional antitrust clearance.” Both Getty and Shutterstock face ongoing pressure from generative AI services that enable users to quickly generate custom images instead of locating stock and paying licensing fees. Getty has its own AI generator, but competition is fierce and the company hasn’t clearly laid out how it’ll “support its future growth.”
“Getty Images is uniquely trusted around the world as the unparalleled leader in premium visual content,” said Getty co-founder Mark Getty. “This transformational transaction is underpinned by the strength of the business and the significant growth potential we see ahead.”
