Getty Images, the global photo and video content provider, will file for bankruptcy protection and go private as it faces intensifying competition from the spread of artificial intelligence-generated images. The company has embarked on a sweeping overhaul of its balance sheet after its stock plunged about 99% since it returned to the U.S. market in 2022.
Getty Images said it has reached a restructuring agreement with creditors and investors and plans to begin Chapter 11 bankruptcy protection proceedings in the U.S. within weeks, Reuters reported on the 13th.
The company is pursuing a prepackaged Chapter 11, in which restructuring terms are agreed with creditors in advance and then submitted for court approval. Getty Images plans to complete the restructuring by the end of the year and convert into a privately held company.
The decision follows the collapse of a planned merger with rival Shutterstock. Getty Images has been under pressure to repair its finances as a heavy debt load was compounded by the proliferation of AI-generated images and video, which has sharpened competition in its core content business.
Once the restructuring is complete, affiliates of the Getty family and Koch Equity Development will own 100% of the company. The investors have agreed to inject up to $533 million in new equity.
Creditors also agreed to debt adjustments. Unsecured noteholders will cancel $270 million of debt, while secured lenders will lower interest costs and extend maturities. Koch Equity Development will provide up to $143 million in financing to support the bankruptcy protection process.
Getty Images said it will continue to operate normally during the restructuring, including the supply of photos and video, and will pay vendors in full through ordinary procedures.
Getty Images is a global content company that supplies photos and video in news, sports and entertainment. Along with Reuters and The Associated Press, it provides visual content to major media outlets and corporations. Its financial position has deteriorated sharply, however, as AI technology has spread. Total debt stood at about $2.1 billion as of the end of June, while its market capitalization was just $20.74 million based on the closing price on the 9th — leaving debt at roughly 100 times its market value.
Getty Images returned to the U.S. stock market in 2022 for the first time in 14 years by merging with a special purpose acquisition company, or SPAC, in a deal that valued it at about $4.8 billion. The stock has since fallen about 99%. The New York Stock Exchange began delisting proceedings for the company in late September.
In August, Getty Images withdrew its earlier earnings guidance, saying it was reviewing options for financing and improving its capital structure. It had hired Guggenheim Securities as an adviser to explore its options.