Meta Loses Millions USD: Selling Giphy To Shutterstock

The UK's competition watchdog reissued an order to Meta last year, instructing them to sell Giphy due to competition concerns.

Giphy serves as the primary provider of animated gifs to popular social networks like Snapchat, TikTok, and Twitter.

As part of the agreement, Meta's all platforms, including Facebook, Instagram, and WhatsApp, will still have access to all of Giphy's graphic and animated content.

Facebook Parent Meta Sells Giphy To Shutterstock

According to Giphy, the largest collection of gifs and stickers in the world, it experiences the following on a daily basis:

◉ Over 1.3 billion search queries.
◉ A total of 15 billion views on various pieces of its content.

Initially, the Competition and Markets Authority (CMA) mandated the sale in November 2021.


When Meta acquired Giphy, they stated that it would be available to other social networks. However, the CMA's investigation into the acquisition revealed that it would hinder competition in social media and advertising.

This was the first time a big Silicon Valley company's transaction has been vetoed by the regulatory agency.

In September, Meta appealed to the CMA in an attempt to prevent the sale. Meta claimed that gifs had lost popularity as a content form, with younger users considering them "For boomers" and "Cringe."

However, in October, Meta announced that it would comply with the CMA's order to sell Giphy, albeit with disappointment.

Shutterstock announced Tuesday it would acquire Giphy from Meta Platforms for $53 million in cash. Shutterstock expressed excitement about acquiring Giphy. CEO Paul Hennessy stated that Giphy allows everyday users to express themselves through memorable gif and sticker content, while also providing brands with an opportunity to be part of casual conversations.

Giphy's extensive library is fueled by individual artists who contribute original content, as well as companies like Disney and Netflix, ensuring a constant supply of current content that can be shared and inserted into everyday conversations on social media.

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