Shutterstock shares crash 29% after Getty Images calls off $3.7 billion merger

Getty Images has terminated its proposed $3.7 billion merger with Shutterstock after the UK Competition and Markets Authority insisted that Shutterstock divest its editorial business as a condition for approval. Following the announcement, Shutterstock shares slumped nearly 30% in extended trading while Getty Images shares jumped about 26%. Both companies will now independently navigate intensifying competition from AI-powered image generation tools.