Meta sells GIPHY to Shutterstock for a giant loss after regulators pressure a sale

How does one flip $400 million right into a cool $50 million in simply 3 quick years? By buying GIPHY, the GIF search engine! As a result of that is precisely what occurred to Fb and Instagram’s mother or father firm, Meta.

On Tuesday, the inventory picture firm Shutterstock introduced(opens in a brand new tab) that it was shopping for GIPHY from Meta for $53 million in money. 

GIPHY has type of quietly ingrained itself into quite a few platforms through the years, powering many social networks’ GIF search engine options. In accordance with Shutterstock, GIPHY sees round 1.3 billion search queries each day and “powers greater than 15 billion day by day media impressions.”

So, why did Meta promote GIPHY and take successful of lots of of tens of millions {dollars}? Nicely, to be honest to Meta, it wasn’t precisely the corporate’s alternative. Meta was compelled to unload the GIF search engine as a consequence of antitrust legal guidelines within the UK.

Again in 2021, UK’s antitrust regulator Competitors and Markets Authority (CMA) advised(opens in a brand new tab) Meta it should relinquish GIPHY after it dominated that Meta’s acquisition lowered competitors out there. Meta lastly exhausted all of its appeals and the CMA affirmed(opens in a brand new tab) its ruling this previous October: Meta should promote GIPHY. 

However, Meta is not utterly reducing its ties with GIPHY. In accordance with Shutterstock, as a part of the acquisition deal, Meta has entered into an “API settlement” with the inventory picture firm with a purpose to maintain utilizing GIPHY to energy its platforms’ GIF searches.

So, do not fret Fb customers who love dropping GIFs. Nothing modifications for you. Not less than, for now.