Shutterstock (SSTK) and Getty Images' (GETY) proposed merger has received conditional approval from the UK's Competition and Markets Authority, though Shutterstock must first sell its editorial business, the regulator said.

"The inquiry group concluded that a sale of Shutterstock's global editorial business, which operates under the Shutterstock Editorial, Backgrid and Splash brands and competes with Getty across live and archive news, sport and entertainment content, could resolve the competition concerns identified," the regulator said in a statement.

In January 2025, the companies announced a merger deal to form a combined entity valued at approximately $3.7 billion. The new entity would be named Getty Images Holdings and would continue to trade on the New York Stock Exchange under the GETY ticker.

Under the terms of the deal, Getty would pay a total of $331 million in cash and 319.4 million shares of Getty Images to Shutterstock shareholders, the companies said.

Getty Images declined to comment. Shutterstock didn't immediately respond to a request for comment from MT Newswires.

Shares of Getty Images were up more than 5% pre-bell, while shares of Shutterstock were up 4.4%.