Giphy Sold by Meta at a Loss to Shutterstock for $53 Million
Meta is offloading Giphy — which maintains the world’s biggest database of animated GIFs — to content marketplace company Shutterstock, taking a steep loss on the forced sale.
Shutterstock is paying $53 million for Giphy. Three years ago, Meta (then Facebook) bought Giphy for $400 million. However, the U.K.’s Competition and Markets Authority (CMA) ruled that Meta’s acquisition of Giphy was anticompetitive — and last fall, the regulator ordered Meta to sell Giphy.
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As part of the Giphy sale agreement, Meta is entering into an API agreement with Shutterstock to ensure continued access to Giphy’s content across Meta’s platform. The transaction is expected to close in June 2023, subject to usual closing conditions.
According to Giphy, its library of GIFs and stickers draws more than 1.3 billion search queries on a daily basis — and generates more than 15 billion daily media impressions. Giphy partners include Meta (owner of Facebook and Instagram), other social media platforms including TikTok, Twitter and Snapchat, and mobile devices. On the content front, Giphy’s media partners include NBC, Disney, Netflix, the NFL, MLB and the NBA.
“This is an exciting next step in Shutterstock’s journey as an end-to-end creative platform,” Shutterstock CEO Paul Hennessy said in a statement. “Shutterstock is in the business of helping people and brands tell their stories. Through the Giphy acquisition, we are extending our audience touch points beyond primarily professional marketing and advertising use cases and expanding into casual conversations.”
The deal also will extend Shutterstock’s API ecosystem to include Giphy’s more than 14,000 busines partners, the company said.
Shutterstock said the deal for Giphy is being funded through cash-on-hand and existing revolving credit facility. The company said it expects Giphy to contribute “minimal revenue” in 2023 with “focused monetization efforts taking place over the course of 2024.” Shutterstock said it is maintaining its 2023 revenue and adjusted EBITDA margin guidance
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