Meta, the parent company of Instagram, Facebook and WhatsApp, has reached an agreement to sell Giphy, the animated image (GIF) service, to the provider of images and visual tools Shutterstock for 53 million dollars (49 million euros), a very high figure. below the 315 million dollars (290 million euros) paid by Mark Zuckerberg’s company three years ago.
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The decision to divest from Giphy just three years after announcing its acquisition in May 2020 responds to the requirement of the UK Competition and Markets Authority (CMA), which last October required the divestment upon concluding that the transaction would harm Giphy. users of social networks and advertisers in the British country.
In connection with the sale, which could be completed by June 2023, Meta Platforms has entered into an Application Interface Agreement (API) to ensure continued access to Giphy content on its platform.
“Through the Giphy acquisition, we are expanding our audience touchpoints beyond primarily professional advertising and marketing use cases and expanding into casual conversations,” said Paul Hennessy, CEO of Shutterstock.
“We plan to leverage Shutterstock’s unique capabilities in content and metadata monetization, generative artificial intelligence, studio production, and creative automation to enable the commercialization of our GIF library as we roll out this offering to clients,” he added.
Shutterstock expects Giphy to add minimal revenue in 2023 with monetization efforts focused throughout 2024 and has maintained its revenue and Ebitda margin forecasts for 2023.
In May 2020, Facebook reported the purchase of the platform to create and share animated images (GIF) Giphy for more than 300 million dollars with the aim of incorporating it into its social network Instagram.
A month later, the CMA decided to open an investigation into the acquisition due to the potential adverse effect it could have on competition, which in January 2021 became an in-depth examination, and which, finally, led to the decision of the British regulator to demand the sale of Giphy.