Facebook Snaps GIF Creator Giphy for $400 Million
In a move worth about $400 million, Facebook (Nasdaq: FB) is swallowing Giphy, the animated graphics creation and sharing platform.
Facebook hasn't disclosed the details of the deal, but Axios cited a source close to the matter in its report, saying the talks began before the Covid-19 outbreak and initially revolved around a partnership.
The medium said Giphy's content library will be integrated into Facebook's Instagram and its other apps. In fact, Facebook Messenger, the main app, and WhatsApp already have the Giphy search and stickers built-in. Other social platforms, including Twitter, Reddit, and Pinterest, also rely on Giphy – and the future of those partnerships is not all clear, though Facebook said that API partners will not lose access to the funky meme creator.
The news sent FB shares higher in the afternoon (+0.59%) after early lows on Friday, while GIF-creators were quick to respond with new content.
Vishal Shah, Instagram's VP of product, said in a blog post today: "People will still be able to upload GIFs; developers and API partners will continue to have the same access to Giphy's APIs; and Giphy's creative community will still be able to create great content."