Getty Images Plans Chapter 11 and Private Restructuring with Koch-Backed Financing

Getty Images intends to file for Chapter 11 bankruptcy and become private through a deal with affiliates of Charles Koch's investment firm. The company says operations, employees, partners, and vendors will not be affected, and it expects to exit restructuring by year's end. The move follows the collapse of its proposed $3.7 billion merger with Shutterstock and declining demand for its iStock e-commerce business.

Getty Images moved to scrap its planned $3.7 billion combination with Shutterstock in late June after UK competition authorities demanded divestment of Shutterstock's editorial arm. Getty's leadership considered that condition unacceptable because editorial growth is central to its strategy. The company also reported spending over $100 million on professional fees and financing tied to the failed deal. It later engaged Guggenheim Securities to explore financing options, leading to Koch Equity Development affiliates pledging up to $533 million in new equity.

The prepackaged Chapter 11 aims to take Getty private and finish restructuring by year-end, with no expected disruption to operations, staff, partners or vendors. Getty's iStock e-commerce unit faces weaker agency demand and disruption, while its core editorial image business is projected to rise from $369 million to $400 million by 2029. Annual subscribers fell from 321,000 to 241,000 after ending iStock free trials.

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