The Competition and Markets Authority (CMA) has given conditional approval to the merger between Getty Images and Shutterstock. While the deal raises no global concerns for stock content, it has been flagged for potential competition issues in the UK’s editorial content market. To address these concerns, Shutterstock will be required to sell its global editorial business to a CMA-approved buyer.
Key Takeaways
- The merger between Getty Images and Shutterstock has been conditionally cleared by the UK’s CMA.
- Concerns were raised regarding the supply of editorial content to UK media outlets, not global stock content.
- Shutterstock must sell its global editorial business to a suitable purchaser to resolve these competition issues.
- The sale of Shutterstock’s editorial operations, including brands like Shutterstock Editorial, Backgrid, and Splash, is expected to address the CMA’s concerns.
Editorial Content Concerns in the UK
The CMA’s independent inquiry group found that the merger could lead to reduced choice and higher prices for UK media outlets when sourcing editorial content. This type of content, which includes images and videos of newsworthy events, people, and landmarks, is crucial for informing the public. Evidence gathered from UK media organisations, publishers, competitors, and content suppliers indicated that Shutterstock is one of the few significant alternatives to Getty, the current market leader in the UK for editorial content.
Resolution Through Divestment
To mitigate these competition concerns, Getty and Shutterstock have offered to sell Shutterstock’s global editorial business. This business encompasses live and archive news, sports, and entertainment content. The sale of these operations, which operate under the Shutterstock Editorial, Backgrid, and Splash brands, is seen by the CMA as a way to restore the competition that would otherwise be lost due to the merger. This proposed divestment was initially put forward by the companies at the end of the CMA’s phase 1 investigation.
Merger to Proceed Post-Sale
Once the sale of Shutterstock’s editorial business is successfully completed with a buyer approved by the CMA, the merger between Getty and Shutterstock can move forward. The companies have previously stated that this merger is expected to generate annual cost synergies of between $150-200 million. Margot Daly, chair of the independent inquiry group, emphasised that the deal can proceed provided that Shutterstock’s editorial business is sold to a suitable buyer, ensuring that UK media outlets and their audiences are not negatively impacted. The CMA will oversee the sales process.
