Stock-photo company Shutterstock has announced that it will be acquiring Giphy, a popular online repository of animated images, for $53 million. The value of the deal marks a significant drop compared to the $315 million that social media giant Meta had reportedly paid to acquire Giphy in 2020. However, Meta was forced to spin off the company due to antitrust regulations imposed by UK officials.
In 2020, the UK Competition and Markets Authority raised competition concerns regarding Meta’s acquisition of Giphy, specifically in advertising and social media. An appeals court later upheld the decision, leading Meta to declare that it would sell Giphy to comply with the UK’s break-up order.
Shutterstock’s acquisition of Giphy is expected to add GIFs and reaction stickers to its digital content library, while also expanding its access to Giphy’s user base of 1.7 billion people. The transaction is set to be completed in June.
The move is part of Shutterstock’s efforts to expand its offerings, and it sees the acquisition of Giphy as a means to offer its customers more visual content options. Meanwhile, Giphy sees the partnership as an opportunity to expand its reach into the world of advertising.
Despite the reduced price for Giphy, the acquisition is still seen as a significant win for Shutterstock, as it strengthens its position in the crowded world of digital content creators. With the integration of Giphy’s popular animated content, Shutterstock also gains access to a wider user base and potential revenue streams.