Getty Images said on Tuesday it would merge with rival Shutterstock to create a $3.7 billion stock-image powerhouse geared for the artificial intelligence era, in a deal likely to draw antitrust scrutiny.

In total, Getty expects to pay $331 million plus 319.4 million shares of its stock to acquire Shutterstock. At today's share price, that works out to a valuation of about $1.35 billion on Shutterstock, or about 7% more than what Shutterstock costs after today's price spike.

Getty Images is the bigger company of the two, and its shareholders will own approximately 54.7% of the new entity, while Shutterstock shareholders will own 45.3%. Getty Images also owns the iStock and Unsplash brands. The company will simply be called Getty Images.

Getty Images Holdings and Shutterstock have agreed to merge into one visual-content company with an enterprise value of about $3.7 billion. Shares of both companies jumped on the announcement.

Visual content companies Shutterstock and Getty Images will join to become a $3.7 billion visual content company.

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.

Two giants of the stock image industry, Getty Images and Shutterstock, are merging to create a $3.7 billion powerhouse built for the age of artificial

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.

Getty Images and Shutterstock agreed to a merger, creating a more formidable competitor for Adobe as generative AI shifts the landscape.

Getty images and Shutterstock have agreed to merge in a £3.7bn deal, geared to monopolise the stock image market