Stock image service Shutterstock has agreed to acquire Giphy from Meta Platforms for $53M, representing a more than $260M loss for the Facebook parent. The deal comes after the U.K.'s competition regulator ordered Meta to sell Giphy, the online animated images library the company bought for an estimated $315M to $400M in 2020. The deal was deemed to restrict competition, potentially benefiting Meta and hindering rivals like Snapchat. - The U.K.'s regulator said Meta could strengthen its market power by restricting gif supply to competitors.
- As a result, Meta agreed to divest all of Giphy's global operations.
- Shutterstock's acquisition, scheduled to finalize in June, will be financed using available cash and the company's revolving credit facility.
- Despite the sale, Meta will continue to have access to Giphy's library for its products, including Facebook and Instagram.
With Giphy's approximately 1.7 billion daily users, the deal is expected to grant Shutterstock access to a massive user base. - Shutterstock users may see Giphy's animated images (GIFs) and web-based stickers playing a more prominent role in the stock content marketplace.
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