Getty Images files for bankruptcy protection as AI disrupts stock photography industry

Stock photography giant Getty Images has filed for Chapter 11 bankruptcy protection as the firm grapples with high debt and increased adoption of AI image generation tools.

In the filing submitted to the United States Bankruptcy Court for the District of Delaware on Wednesday, Getty Images listed assets and liabilities in the range of $1 billion to $10 billion, and more than 100,000 creditors.

Getty Images said it plans to move forward with existing financial restructuring that is expected to take the firm private, with consenting shareholders receiving ownership of the reorganized company, according to the filing. The restructuring includes an equity investment of up to $533 million from members of the Getty family and affiliates of Koch Equity Development, which is already a major Getty Images shareholder, according to details filed with the Securities and Exchange Commission on Oct. 12.

At the time, Getty Images said suppliers would continue to be paid in full under the restructuring plan, with normal business operations expected to continue.

Mounting debt and AI disruption

Following its second-quarter earnings release in August, Getty Images reported approximately $2.1 billion in total debt as of the end of June, although that included $628.4 million in notes that were redeemed in July after its proposed merger with Shutterstock was terminated.

The firm elected to delay interest payments due Sept. 1 on two series of unsecured notes, despite saying it had enough cash to cover them. The company subsequently made the payments on Sept. 30, within the permitted grace periods, avoiding a default.

Bloomberg first reported the bankruptcy filing on Wednesday. The Latent reached out to Getty Images for comment.