Getty Images has announced a restructuring plan to take the company private following a failed merger with Shutterstock. The platform will initiate a prepackaged Chapter 11 bankruptcy process in the coming weeks to address its financial obligations. The company expects to complete this restructuring by the end of the year.
The firm secured $533 million in funding from the Getty family and Koch Equity Development, the investment arm of Charles Koch. This capital injection aims to reduce the company's debt, which exceeded $1.3 billion as of June 30. Following the process, the company will be owned by affiliates of the Getty family and Koch Equity Development.
In September, the company entered a 30-day grace period after missing interest payments on unsecured notes. These financial difficulties follow the collapse of a proposed $3.7 billion merger with Shutterstock in July. The deal was abandoned after UK regulators imposed restrictions, despite receiving antitrust clearance from the US Department of Justice in February.
The stock photography market faces increasing pressure from generative AI services that allow users to create custom images without licensing fees. While Getty Images operates its own AI generator, the company has not detailed specific strategies for future growth in this competitive landscape.
