Despite investing $400 million for Giphy three years ago, Meta has sold it to Shutterstock for $53 million (£42 million).
On competition concerns, the UK’s competition watchdog reissued an order to Meta last year to sell Giphy.
Giphy is the primary source of animated gifs for social media platforms such as Snapchat, TikTok, and Twitter.
As part of the agreement, Facebook, Instagram, and WhatsApp will continue to have access to Giphy’s material.
Giphy, the world’s largest collection of gifs and stickers, says it every day:
receives about 1.3 billion search inquiries and has various pieces of its material displayed a total of 15 billion times
The transaction was originally authorized by the Competition and Markets Authority (CMA) in November 2021.
When Meta acquired Giphy, it stated that it will be “openly available” to other social networks.
However, the CMA’s review into the purchase concluded that it would impair competition in social media and advertising.
Shutterstock executives discuss their approach to AI in Tech Life.
It was the first time a major Silicon Valley company’s deal has been vetoed by the regulator.
Meta filed an appeal with the CMA in September to try to stop the transaction.
Gifs, according to Meta, “have fallen out of favor as a content form, with younger users in particular describing gifs as ‘for boomers’ and ‘cringe.'”
However, in October, Meta stated that it will accept the CMA’s order to sell Giphy despite its disappointment.
Shutterstock expressed delight with the acquisition of Giphy.
According to CEO Paul Hennessy, “Giphy enables everyday users to express themselves in memorable ways with gif and sticker content, while also enabling brands to be a part of these casual conversations.”
Individual artists contribute original content to Giphy’s library, as do organizations such as Disney and Netflix, assuring a continual supply of current content that can be incorporated into everyday discussions and shared via social media.
