Meta sells Giphy at a loss of $260 million – to Shutterstock
Meta bought online database Giphy in 2021 for around $315 million. But the supervisory authorities threw a spanner in the works for the Facebook group. Meta Giphy is now selling to Shutterstock for around $53 million – at a loss of $260 million.
When Facebook parent company Meta took over the online database Giphy in 2021 for around 315 US dollars, there was great euphoria. Once again, one would like to say. Because after the takeover of Instagram and WhatsApp, CEO Marc Zuckerberg seemed to have succeeded in the next stroke of genius. But what followed was disappointment.
Meta sells Giphy to Shutterstock
A short time later, the British competition authority CMA (Competition and Markets Authority) intervened and officially ordered the reverse transaction of the purchase or sale of Giphy. The reason: the fear of distortion of competition.
By the end of 2021, the fate of the deal seemed sealed. However, a year-long legal battle ensued. At the end of 2022 it was clear: Meta had to sell Giphy again. A few months later, the Facebook group has apparently found a buyer. Namely the image service Shutterstock.
Giphy: Meta loses $260 million
That comes from one report from The Guardians out. Meta agreed to sell Giphy to Shutterstock for $53 million. The bottom line for the Facebook group would be a loss of around 260 million US dollars.
Meanwhile, the takeover is accompanied by an agreement that ensures access to Giphy via the meta platforms Instagram, WhatsApp and Facebook. Shutterstock meanwhile confirmed the deal in one official statement.
CEO Paul Hennessy said the acquisition is “an exciting next step in Shutterstock’s journey to becoming an end-to-end creative platform.” He added:
With the acquisition of Giphy, we are expanding our audience touchpoints beyond primarily professional marketing and advertising applications and into casual conversations.
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