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How did Meta turn $400 million into a mere $50 million in just three short years? By acquiring GIPHY, the popular GIF search engine! This surprising move was announced by the stock photo company Shutterstock, revealing that it had purchased GIPHY from Meta for $53 million in cash.
The Impact of GIPHY on Social Media Platforms
GIPHY has become a staple on numerous platforms, seamlessly integrating itself into social networks’ GIF search features. With approximately 1.3 billion daily search queries and over 15 billion daily media impressions, GIPHY has solidified its presence in the online world.
Antitrust Laws Force Meta’s Hand
Meta’s decision to sell GIPHY was not entirely voluntary. The UK’s antitrust regulator, Competition and Markets Authority (CMA), mandated that Meta divest itself of GIPHY due to concerns about reduced competition in the market. Despite Meta’s efforts to appeal the ruling, the CMA stood firm, requiring Meta to sell GIPHY.
Maintaining a Connection with GIPHY
Although Meta had to part ways with GIPHY, it has maintained a relationship with the GIF search engine through an “API agreement” with Shutterstock. This agreement allows Meta to continue using GIPHY to power its platforms’ GIF searches, ensuring that Facebook users can still enjoy their favorite GIFs without interruption.
