Shutterstock are joining forces, agreeing to a $3.7 billion merger to create a visual content company. The companies announced the merger on Tuesday and said it will be named Getty Images Holdings,

Holdings and stock-photo rival Shutterstock are merging to form a company worth about $3.7 billion to meet booming demand for licensed images and videos, as artificial intelligence disrupts the business of content creation.

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.

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 25% higher Tuesday morning.

The companies said Tuesday that they have complementary portfolios and that a merger will provide customers with a broader array still imagery, video, music, 3D and other media.

Getty Images Holdings, Inc. (NYSE:GETY) and Shutterstock, Inc. (NYSE:SSTK) shares are trading higher premarket on Tuesday after the companies entered a deal to create a visual content company in a merger of equals.

The companies claim the merged company will 'be well-positioned to meet the evolving needs of creative, media, and advertising industries.' Will the new Trump admin let it fly?

The merger comes at a time when companies that use still images are facing increased competition from images generated by artificial intelligence.

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.