Meta, previously known as Facebook, has sold Giphy, the animated GIF search engine, to Shutterstock for $53 million.
This comes just three years after Meta acquired Giphy for $400 million.
The sale was prompted by the UK’s competition watchdog, which ordered Meta to sell Giphy on competition grounds.
Giphy is a major provider of animated GIFs to popular social networks like Snapchat, TikTok, and Twitter.
Despite the sale, Meta’s platforms including Facebook, Instagram, and WhatsApp will still have access to Giphy’s content.
The sale was initially mandated by the Competition and Markets Authority (CMA) in November 2021.
Giphy would be “openly available” to other social networks, according to Meta’s statement following the acquisition.
However, the CMA’s investigation found that Meta’s ownership of Giphy would harm competition in social media and advertising.
Gifs “have fallen out of fashion as a content form, with younger users in particular describing gifs as ‘for boomers’ and ‘cringe'”, Meta said.
While Meta described GIFs as falling out of fashion, Shutterstock expressed excitement over acquiring Giphy, highlighting its role in enabling users to express themselves and brands to engage in casual conversations.
Giphy’s library consists of content from individual artists and companies like Disney and Netflix, ensuring a continuous supply of current content for social media sharing.
Source-BBC
