New Delhi: One of the internet’s largest suppliers of stock photos, Getty Images, plans to file for bankruptcy and go private by the end of the year.
The American visual-media company will file for Chapter 11 bankruptcy protection in the coming weeks as part of a prepackaged restructuring that will take it private by the end of 2026.
Under the agreement announced on 12 October, affiliates of the Getty family and Koch Equity Development will invest up to $533 million in new equity and emerge as 100 per cent owners of the reorganised company. Koch Equity Development is also providing up to $143 million in financing to support the process.
“This transformational transaction is underpinned by the strength of the business and the significant growth potential we see ahead,” co-founder and chairman Mark Getty said in a press release.
The move is aimed at cutting debt and strengthening the balance sheet after years of high leverage and competitive pressure. According to a Reuters report, as of 30 June, Getty reported about $2.1 billion in total debt, compared with a market valuation of $20.74 million. Holders of unsecured bonds have agreed to retire $270 million in notes. Secured lenders, representing roughly 89 per cent of those obligations, have agreed to lower interest costs and extend maturities.
Getty said day-to-day operations will continue without disruption.
“Vendors will be unaffected and paid in full in the ordinary course of business,” the company stated, adding that it anticipates no adverse effects on employees, photographers, contributors, customers, or partners. The filing will be limited to certain US entities.
Failed Shutterstock deal
The restructuring follows the collapse of a planned $3.7 billion merger with rival Shutterstock earlier this year. That deal fell through after the UK’s Competition and Markets Authority required the sale of Shutterstock’s editorial business as a condition of approval. Getty has also faced growing competition from AI-generated imagery, which has pressured traditional stock and editorial photo licensing.
Shares of Getty, which returned to public markets in 2022 via a SPAC deal that valued the company near $4.8 billion, had plummeted more than 99 per cent by early October. The New York Stock Exchange began delisting proceedings after the stock fell below $1. Trading moved to the over-the-counter market.
In August, the company withdrew its financial guidance while reviewing strategic financing options and balance-sheet initiatives. It had engaged Guggenheim Securities as an adviser.
Mike Harris, senior managing director and co-head at Koch Equity Development, said in a news release that the firm remains “confident in the company’s future and fully supports this transaction alongside the Getty family. This equity investment will provide Getty Images with a firm financial foundation and greater flexibility to continue investing in its employees, customers, contributors, and future growth.”
Getty remains a major supplier of editorial and commercial photography and video to news organisations, media companies, and businesses worldwide.
(Edited by Prasanna Bachchhav)
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