On Tuesday, Shutterstock announced that it has signed a legally binding contract to buy GIPHY from Meta Platforms for $53 million in cash. The largest selection of GIFs and stickers can be found on GIPHY. GIPHY was acquired by Meta three years ago for $400 million. Shutterstock stated that it anticipates the transaction to finalize the following month.
Giphy was ordered to be sold by Britain’s competition watchdog last year due to concerns that it would restrict or prevent competitors like Twitter and Snapchat Inc. (SNAP.N) from access to the target’s material.
Giphy, situated in New York, was purportedly acquired by Meta for $400 million in 2020. The transaction was contested a year later by Britain’s Competition and Markets Authority, and after a successful campaign, the deal was overturned. This was the first time a regulator had successfully compelled a U.S. tech giant to sell an acquired company.
Shutterstock’s stock increased up to 4% premarket, with the company anticipating that the purchase will finish next month.
According to the company, Giphy will generate “minimal” new money this year and will start making attempts to do so in 2024.
“This is an exciting next step in Shutterstock’s journey as an end-to-end creative platform,” said Shutterstock CEO Paul Hennessy.
Giphy boasts of having the largest collection of GIFs, or animated pictures, as well as web-based stickers, which are utilized on social media sites like Facebook, Instagram, TikTok, and Microsoft Teams.
It receives 15 billion daily impressions for its material, which also includes formal contributions from media companies like Disney and Netflix.
According to Shutterstock, the Giphy arrangement will give customers access to around 1.7 billion daily users.
