Getty Images said on Monday it would file for bankruptcy and go private after a restructuring agreement it expects to close by the end of the year.
The visual-content provider plans to begin an expedited prepackaged Chapter 11 process in the coming weeks. The move marks a major reset after the collapse of its planned merger with rival Shutterstock, amid heavy debt and growing competition from AI-generated imagery.
New owners and fresh equity
Once the restructuring is complete, affiliates of the Getty family and Koch Equity Development will own 100 per cent of the company. The investors have also committed to provide up to $533 million of new equity, the company said. Holders of Getty's unsecured bonds agreed to retire $270 million of notes, while secured lenders agreed to reduce interest costs and extend debt maturities under the plan.
Getty said its operations would continue normally and that vendors would be paid in full in the ordinary course. It added that financing from Koch Equity Development of up to $143 million would support the restructuring process.
The slide from a $4.8 billion valuation
The slide has been dramatic. The company reported total debt of about $2.1 billion as of June 30, compared with a market valuation of $20.74 million as of Friday's close. Getty's shares have lost about 99 per cent of their value since returning to public markets in 2022 through a special-purpose acquisition company that valued it at about $4.8 billion, after 14 years as a private firm. The New York Stock Exchange commenced delisting proceedings against the company at the end of September.
In August, Getty withdrew its financial guidance, citing an ongoing review of strategic financing alternatives and balance-sheet management initiatives, and said it had engaged Guggenheim Securities to advise on those efforts. Getty competes with Reuters and the Associated Press in providing photos and videos for editorial use.
Sources: Getty Images plans bankruptcy filing, to go private | Getty Going Private as the Beleaguered Stock Photo Brand Files for Bankruptcy
The visual-content provider plans to begin an expedited prepackaged Chapter 11 process in the coming weeks. The move marks a major reset after the collapse of its planned merger with rival Shutterstock, amid heavy debt and growing competition from AI-generated imagery.
New owners and fresh equity
Once the restructuring is complete, affiliates of the Getty family and Koch Equity Development will own 100 per cent of the company. The investors have also committed to provide up to $533 million of new equity, the company said. Holders of Getty's unsecured bonds agreed to retire $270 million of notes, while secured lenders agreed to reduce interest costs and extend debt maturities under the plan.
Getty said its operations would continue normally and that vendors would be paid in full in the ordinary course. It added that financing from Koch Equity Development of up to $143 million would support the restructuring process.
The slide from a $4.8 billion valuation
The slide has been dramatic. The company reported total debt of about $2.1 billion as of June 30, compared with a market valuation of $20.74 million as of Friday's close. Getty's shares have lost about 99 per cent of their value since returning to public markets in 2022 through a special-purpose acquisition company that valued it at about $4.8 billion, after 14 years as a private firm. The New York Stock Exchange commenced delisting proceedings against the company at the end of September.
In August, Getty withdrew its financial guidance, citing an ongoing review of strategic financing alternatives and balance-sheet management initiatives, and said it had engaged Guggenheim Securities to advise on those efforts. Getty competes with Reuters and the Associated Press in providing photos and videos for editorial use.
Sources: Getty Images plans bankruptcy filing, to go private | Getty Going Private as the Beleaguered Stock Photo Brand Files for Bankruptcy
