Shares of Getty Images (GETY) are up 1.9% in pre-market trading after CEO Craig Peters threatened to exit the UK markets if regulators block the company’s takeover of Shutterstock (SSTK). Peters noted that the Competition and Markets Authority (CMA) is failing to recognize how rapidly AI is transforming the image-generation market.
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Here are the Merger Details
In January, Getty Images and Shutterstock announced a $3.7 billion merger. After an initial review, the CMA referred the merger to a detailed phase 2 investigation earlier this month, citing risks of substantially reduced competition.
Getty and Shutterstock face competition from AI platforms that create images from text, as well as digital image services like Adobe (ADBE), Canva, and OpenAI (PC:OPAIQ). Peters said the merger aims to combine Shutterstock, which is seeing a decline in licensing revenue due to AI, with Getty to achieve greater scale.
Here’s Why the CMA Is Delaying Approval
The CMA worries the merger could lead to higher prices, poorer commercial terms, or lower quality for editorial and stock images. Getty and Shutterstock’s late-stage remedies failed to fully resolve these issues, so the CMA sent the case to an expert panel for phase 2 review, which is set to conclude by April 19, 2026.
The CMA noted that it heard broad concerns from UK news outlets and advertisers about the merger’s effects, and debates on AI’s role in the market. Hence, it insists on a deeper probe to check if UK businesses might face higher subscription fees or poorer service.
Peters’ Warning to the CMA
Peters highlighted that the phase 2 review process would cost the groups more than $50 million, calling it “a really expensive appeal for a very small portion of businesses in the UK.” He warned that if the deal is blocked, some parts of these businesses might stop investing in the UK, and parts of the business could leave, leading to less investment overall.
Peters stated the merger is pro-growth, not anti-competitive, and criticized the CMA for a “too narrow” view. Getty is suing AI companies like Stability AI, accusing them of using its copyrighted images without permission in both the U.S. and the UK. Peters is surprised that the CMA thinks AI technology is still years away when it’s actually being adopted faster than any tech in history.
Is GETY Stock a Buy, Hold, or Sell?
On TipRanks, GETY stock has a Moderate Buy consensus rating based on one Buy and one Hold rating. The average Getty Images price target of $7 implies an impressive 343% upside potential from current levels. Year-to-date, GETY stock has lost nearly 27%.
