Meta Platforms, the parent company of Instagram, Facebook and WhatsApp, has reached an agreement to sell Giphy, animated image service (GIF), provider of images and visual tools Shutterstock for $53 million the number is much lower $315 million paid by Mark Zuckerberg’s company three years ago.
The decision to part ways with Giphy barely three years after the announcement of the acquisition in May 2020 responds to a demand from the UK Competition and Markets Authority (CMA), which last October called for the sale, concluding that the deal would harm social media users and advertisers in the UK country.
In connection with the sale, which may be completed by June 2023, Meta Platforms has entered into an application interface (API) agreement for ensure constant access to Giphy content on their platforms.

Photo: Reuters file
“Through the acquisition of Giphy, we are expanding the touch points with our audience, moving beyond primarily professional advertising and marketing use cases, and expanding into casual conversations,” said Paul Hennessy, CEO of Shutterstock.
“We plan to take advantage of Shutterstock’s unique content and metadata monetization capabilities, generative artificial intelligence, studio production and creative automation to ensure the commercialization of our GIF library when we present this offering to customers.”
Shutterstock expects Giphy to add minimal revenue in 2023, with monetization efforts focused throughout 2024, with revenue and Ebitda margin projections for 2023 remaining in place.

Photo: Screenshot
In May 2020, Facebook announced the purchase of a platform for creating and sharing animated images (GIF). Giphy for over $300 million in order to include it in your social network Instagram.
A month later, the CMA decided to launch an investigation into the acquisition due to the potential adverse impact it could have on competition, which turned into an in-depth investigation in January 2021 and finally led to a decision by the UK regulator. from demand the sale of Giphy.
For the first time, the verdict noted that London blocks takeover by tech giant American, and brought a new determination to explore digital conventions.
(According to information from Europe Press And Reuters)
Source: Aristegui Noticias

Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.