Previously, in 2021, the UK antitrust authority (CMA) ruled that Facebook (the predecessor of Meta) had to sell the animated image sharing platform Giphy because this acquisition reduced competition between social networks and negatively impacted advertisers.
Meta reportedly spent around $400 million to acquire Giphy, a New York-based company, in 2020. A year later, the deal was “scrutinized” by the CMA, and for the first time in history, the UK regulator succeeded in forcing an American tech giant to sell its previously acquired company.
Shutterstock expects the Meta deal to close next month. The company said it will begin efforts to increase revenue for Giphy starting in 2024, with revenue expected to be “minimal” this year.
“This is an exciting next step in Shutterstock’s journey as an all-inclusive creative platform,” said Paul Hennessy, CEO of Shutterstock.
Giphy is the platform with the world's largest archive of animated images, commonly known as GIFs, widely used on web versions of social networking platforms such as Facebook, Instagram, TikTok or even Microsoft Teams.
Its content also includes mainstream content from media companies like Disney and Netflix, garnering around 15 billion impressions per day.
Shutterstock said the acquisition will give the company access to Giphy's estimated 1.7 billion daily users.
(According to Reuters)
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