Getty Images and Shutterstock have joined forces to create the largest visual content hub

Getty Images has announced plans to merge with competitor Shutterstock to create a $3.7 billion image processing hub focused on the artificial intelligence era.

In the wake of the deal news, Shutterstock shares rose by 26.5% in the premarket, while Getty Images shares gained 50.2%. The stock prices of both brands have declined, reflecting waning interest in stock photography amid the growing popularity of mobile cameras.

The merger will enhance content offerings, expand event coverage, and introduce new technologies.

The new company will be named Getty Images Holdings and will trade on the New York Stock Exchange under the ticker GETY. It is projected that by the third year of operation, the merger will generate annual savings of $150 to $200 million.

Getty Images will continue to compete with Reuters and the Associated Press by providing photographs and video content for editorial use. The deal marks a significant step for both companies in their efforts to maintain their positions in the rapidly evolving visual content industry.

Source: CNBC