Meta sells Giphy for 13% of the amount it paid

by Jerry

Meta had to give up Giphy, the GIF database, acquired in 2020. At the time, Mark Zuckerberg’s company paid $400 million for the acquisition, but is now selling for $53 million to Shutterstock. That is, the owner of Facebook and Instagram will receive only 13% of the amount she spent.

The announcement was made by the buyer itself, Shutterstock, one of the largest image banks in the world. According to the company, the deal is expected to be finalized by the month of June and the payment will consist of “$53 million of net cash paid at closing.”

In addition, Meta has signed a commercial agreement to continue accessing Giphy’s content through its product line, such as WhatsApp and Facebook.

In the words of Paul Hennessy, CEO of Shutterstock:

Shutterstock is in the business of helping people and brands tell their stories. Through the acquisition of GIPHY, we are broadening our touchpoints with audiences beyond primarily professional marketing and advertising use cases and expanding into casual conversations. Giphy allows everyday users to express themselves in memorable ways with GIF and stickers, as well as allowing brands to be part of these casual conversations.

Shutterstock shares rose 4% after the purchase announcement.

Sale of Giphy had push from UK organ
Meta bought Giphy for $400 million in 2020, a deal that drew attention due to its value at the time. However, it wasn’t long before a headache arose in the life of Mark Zuckerberg, CEO of Meta.

As early as 2021, an antitrust review said the Instagram owner’s purchase of the GIF platform raised concerns about a possible monopoly. In October 2022, the UK regulator set a final order for Meta to sell Giphy.

It is worth remembering that the entity had already demanded the sale in 2021, however, Meta was able to delay the move due to an appeal.

Since the final order, the American company has announced that it has complied with the decision of the UK Competition and Market Authority (CMA). As such, the negotiations between Meta and Shutterstock shouldn’t have taken long to finalize.

Giphy goes all the way to the new owner, without being split between several different companies.

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