Getty Images has filed for bankruptcy. It will become privately owned.
Getty Images will become a privately held company once the restructuring process is complete / Photo: Shutterstock.com / Samuel Boivin
On October 21, the owner of the online photo stock agency Getty Images filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code. The process is proceeding according to a plan previously agreed upon with creditors: the company is thus carrying out its previously announced restructuring, which is expected to be completed by the end of the year. Afterward, Getty Images will become a privately held company owned by the Getty family and Koch Equity Development (the investment arm of the American industrial conglomerate Koch Industries, which specializes in direct investments and strategic acquisitions).
Getty Images filed the petition with the Delaware Bankruptcy Court. The restructuring will mark a major reset for the company following the collapse of its merger with competitor Shutterstock, notes CNBC, emphasizing that the deal was derailed by a high debt burden (as of June 30, Getty’s total debt stood at approximately $2.1 billion) and a shift among customers from stock photos to AI-generated images.
Bloomberg notes that Getty filed for bankruptcy after lengthy negotiations with creditors and investors: The company took advantage of a 30-day grace period after failing to pay interest on unsecured bonds that came due on September 1. At the time, Getty stated that it had the funds to make those payments but decided to use the grace period to negotiate a debt restructuring with its creditors.
Affiliates of the Getty family and Koch Equity Development have now committed to investing up to $533 million in the company in the form of new equity as part of a restructuring plan, upon completion of which they will acquire 100% of Getty Images. In addition, Koch Equity Development will provide up to $143 million in financing during the proceedings, according to a Getty press release.
In documents filed with the Delaware Bankruptcy Court, Getty estimated its assets and liabilities to be in the range of $1 billion to $10 billion. The company has also begun soliciting creditor votes on a reorganization plan, according to CNBC. Getty Images stated that it will continue to operate as usual throughout the proceedings and that the restructuring will not affect content creators, partners, clients, employees, or suppliers.
Getty Images had already announced its plans to file for bankruptcy back in mid-October. At that time, it was also reported that the New York Stock Exchange had suspended trading in Getty shares and initiated delisting proceedings, citing an “abnormally low trading price.” At the close of trading on September 28, Getty’s stock price was approximately $0.12–0.14.
This article was AI-translated and verified by a human editor
