AI claims first major victim as Getty Images files for bankruptcy

Getty Images filed for bankruptcy on Wednesday, formalizing restructuring plans unveiled more than ​a week ago as part of its ‌move to go private.

Getty had previously plans to file for bankruptcy, marking a major reset after its planned ​merger with rival Shutterstock collapsed under the ​weight of heavy debt and growing competition ⁠from AI-generated imagery

Getty’s problems has been largely blamed on developments in AI which has impacted the need for photographs, being basically a photo creator itself. Developments in AI has giving rise to the emergence of a number of free apps where media establishments and other hitherto users of commercial photographs to resort to the free option which AI offers

The company said it launched a ​solicitation process to secure formal approval for ​its reorganization plan announced last week

The visual-content provider said it ‌will ⁠continue operating in the ordinary course throughout the process, with no impact on content contributors, partners, customers, employees or vendors

It expects to complete ​the restructuring by ​year-end

In a ⁠filing at the Delaware bankruptcy court, the company listed both estimated assets and ​liabilities in the range of $1 billion ​to $10 ⁠billion

Getty, which competes with Reuters and the Associated Press in providing photos and videos for editorial ⁠use, ​said financing from Koch Equity ​Development of up to $143 million would support the restructuring process

After abandoning a $3.7 billion merger with rival Shutterstock in late June over a regulatory roadblock, Getty Images has now filed for bankruptcy and intends to go private in partnership with Charles Koch’s investment firm.

As the company plots an overhaul, it says that there will be no impact on operations, employees, partners and vendors. It plans to undergo a prepackaged bankruptcy process shortly and emerge from restructuring by the end of the year. Getty provides wire service photography and video to news outlets and businesses globally, including most red carpets and film festival premieres.

In June, Getty CEO Craig Peters said that its board of directors decided to scrap the deal to merge with Shutterstock after the top regulator in the U.K., the Competition and Markets Authority, required the sale of Shutterstock’s editorial business. Getty, which is focused on growing its core editorial business, viewed that as a nonstarter.

During its latest earnings call in August, Peters said the company had spent “more than $100 million across professional fees and financing costs in pursuit of what we believe will be a strategic transaction” with Shutterstock that ultimately didn’t go through.

At the time, Getty had hired Guggenheim Securities to seek strategic financing alternatives in its stand-alone path. That resulted in the Koch team arriving to provide new financing (Koch Equity Development has been a backer of Getty since 2018, after making a $500 million preferred equity investment that year).

The company disclosed in an investor presentation on Monday that its iStock eCommerce business has seen “declining agency demand and disruption,” presumably due to the rapid adoption of AI tools and products that have made stock image creation easy.

Yet Getty projects growth in its core editorial image unit, forecasting that the division that’s powered by news images (i.e., real photos of actual events that have occurred), will grow from $369 million to $400 million by 2029.

Getty CFO Jennifer Leyden had said in August that annual subscribers fell from 321,000 to 241,000 over the prior year due to a “deliberate strategy to deemphasize lower-value acquisition channels, including the discontinuation of our iStock free trial program.”

Now it will be leaning even further into its archive and news photography-driven business. “This transformational transaction is underpinned by the strength of the business and the significant growth potential we see ahead,” said Mark Getty, co-founder and chairman of the Board. “I am pleased to continue our strong partnership with Koch Equity Development and the lender groups to provide capital structure improvements that will enable us to build on our solid foundation and seize new growth opportunities.”

Affiliates of Koch Equity Development have pledged up to $533 million of new equity to help the image provider go from a publicly traded firm to setting itself up as a private company. A Getty spokesperson reiterates to The Hollywood Reporter that layoffs will not be part of the restructuring plans.

Getty CEO Peters said of the deal, “Core pillars of our success are the longstanding commitment of our customers and partners, the deep expertise and creativity of our team and content contributors, and the uniqueness of our archive.”

Mike Harris, senior managing director and co-head at Koch Equity, added: “We remain confident in the company’s future and fully support 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 Images is a British-American company most known for selling stock photos online. They make more than a billion dollars a year in revenue. In 2025, the company posted full-year revenue of $981.3 million, which represented a 4.5% increase year-over-year.