AI thwarted plans: Getty Images goes bankrupt
The major photo marketer Getty Images is bankrupt. The company has filed for insolvency proceedings in the USA and wants to initiate a financial realignment that has already been announced.
Merger with Shutterstock failed
The provider of image and video material wants to restructure its debts and withdraw from the stock market, the news agency reported Reuters. After the process is completed, the Getty family and the investment company Koch Equity Development will hold all shares in the company. The restructuring is scheduled to be completed by the end of 2026. With the application to a bankruptcy court in the US state of Delaware, Getty Images is initiating a fundamental restructuring that the company had already announced last week. The restructuring that has now been initiated follows the failure of the planned merger with competitor Shutterstock. The transaction had become increasingly difficult given the high debt burden and increasing competition from AI-generated images.
As part of the realignment, the majority owners, i.e. the Getty family and Koch Equity Development, the investment company of the entrepreneur Charles Koch, are to take over 100 percent of the shares in the future. For this purpose, the investors have promised an equity injection of up to 533 million dollars (around 459 million euros). In addition, financing from Koch Equity Development of up to 143 million dollars (around 123 million euros) is intended to support the insolvency proceedings.
Business continues
Getty Images has also started a process to obtain formal approval of the restructuring plan that has already been presented. The company expects to complete the reorganization by the end of the year. In filings with the bankruptcy court, Getty Images estimated both its estimated assets and liabilities at between $1 billion and $10 billion (around 860 million to 8.6 billion euros). Business operations should continue to operate without restrictions during the process. According to the company, the restructuring will not impact photographers and other content providers, business partners, customers, employees or suppliers. Getty Images wants to ensure that the provision of images and videos continues even during the financial restructuring.
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