In a move that is set to reshape the stock photo industry, Getty Images and Shutterstock have announced a merger valued at around $3.7 billion. The deal, announced on Tuesday, will see the two companies combine their vast libraries of stock photos, expanding their offerings and enhancing their technologies to better serve customers.

The merger comes at a time when the industry is facing increasing competition from AI-powered image creation tools. Companies like OpenAI, Google, Microsoft, and Adobe have been developing text-to-image AI tools, which have the potential to disrupt the traditional stock photo business model. In response to this trend, Getty Images launched an image generator trained on its vast library of licensed photos in 2023, while Shutterstock struck an AI training deal with OpenAI.

Under the terms of the merger, Getty Images CEO Craig Peters will remain the head of the combined companies when the deal closes. A reworked board of directors will consist of members from both Getty Images and Shutterstock, including Shutterstock CEO Paul Hennessy. The merger is expected to bolster the companies by "enhancing our content offerings, expanding event coverage, and delivering new technologies to better serve our customers," according to Peters.

Despite the merger, Shutterstock will remain a separate website, according to Getty Images spokesperson Anne Flanagan. This move is likely intended to maintain the brand's identity and customer base, while still allowing the companies to benefit from their combined resources.

The deal may also raise antitrust concerns, given the significant market share that the combined companies will hold. However, it is unclear how a more merger-friendly Trump administration will respond to the deal. The merger's impact on the industry and its customers remains to be seen, but one thing is certain - the rise of AI-powered image creation tools has forced traditional stock photo companies to adapt and evolve.

The merger is also significant in light of recent partnerships between Getty Images and other companies. For example, Getty Images partnered with online image editor Picsart to create a "responsible, commercially-safe" AI image generator. Shutterstock, on the other hand, has agreements with Meta, Google, and Amazon, according to Reuters. These partnerships demonstrate the companies' efforts to stay ahead of the curve and capitalize on the growing demand for AI-powered image creation tools.

As the industry continues to evolve, one thing is clear - the merger between Getty Images and Shutterstock marks a significant shift in the stock photo landscape. The deal's implications will be closely watched, and its impact on the industry and its customers will be felt for years to come.