Shutterstock are joining forces in a merger valued at around $3.7 billion, the companies announced on Tuesday. The merger will allow the companies to expand their stock photo libraries as they face increasing competition from AI-powered image creation tools.

Getty Images is buying Shutterstock to create a $3.7 billion visual content company. The merger comes at a time when companies that use still images are facing increased competition from images generated by artificial intelligence.

Getty Images on Tuesday said it has agreed to merge with its rival Shutterstock in a cash-and-stock deal. The combined entity is expected to be valued at

Getty Images and Shutterstock will merge into one company valued at $3.7 billion in a deal that aims to take on competition from AI, the companies announced on Tuesday. The new premier visual content company will be called Getty Images Holdings, Inc. and at close, Getty Images’s CEO, Craig Peters, will serve as CEO of the combined company.

Getty Images Holdings Inc. agreed to acquire rival stock-photo provider Shutterstock Inc. in a deal that would create a combined company worth about $3.7 billion including debt.

The giant commercial photo and video providers are grappling with the emergence of artificial intelligence tools that have flooded the internet with AI-created images.

Shares in Getty Images and Shutterstock surged after the image companies agreed to merge, creating a group worth about $3.7 billion including debt. Getty stock stood about 49% higher in recent premarket trading.

Under the deal, Shutterstock shareholders can opt to receive either $28.80 per share in cash, or 13.67 shares of Getty Images, or a combination of 9.17 shares of Getty and $9.50 in cash for each Shutterstock share they own.

Two of the world's largest picture agencies, Getty Images and Shutterstock, announced plans to merge on Tuesday in a move that will create a giant in the visual content sector. The firms intend to pool their gigantic image platforms,