Meta complies with UK order and sells Giphy to Shutterstock for $53 million

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In 2020, Facebook’s owner bought the GIFs platform for about $ 400 million, but the deal was contested by the UK’s competition body. Meta had bought Giphy in 2020. REUTERS/Dado Ruvic Image bank company Shutterstock said this Tuesday (23) that it will buy Meta’s Giphy GIF platform for US$53 million. The announcement comes months after the parent company of Facebook, Instagram and WhatsApp agreed to sell the company over competition concerns, according to Reuters. The UK antitrust regulator last year ordered Meta to sell Giphy over concerns the deal would hamper competition, hurting Snapchat and Twitter. In 2020, Meta reportedly paid $400 million for Giphy. A year later, the deal was challenged by the UK Competition and Markets Authority (CMA), the first time a UK regulator has forced a US tech giant to sell an already acquired company. Shares in Shutterstock, which expects the deal to close next month, rose as much as 4% in premarket trading. The company said that Giphy will add “minimal” revenue this year and launch efforts to increase revenue starting in 2024. “This is an exciting next step in Shutterstock’s journey as an end-to-end creative platform,” said President- company executive, Paul Hennessy. Giphy has the world’s largest repository of animated images, known as GIFs, and stickers that are used on platforms such as Facebook, Instagram, TikTok and Microsoft Teams. The content, which also includes official material from media companies like Disney and Netflix, racks up 15 billion daily impressions. The deal with Giphy will allow access to about 1.7 billion daily users, Shutterstock said.

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