Shutterstock Inc. will buy digital sticker library Giphy from Meta Platforms Inc. for $53 million, after the social media giant was forced to divest of the company by UK antitrust authorities.
Meta bought Giphy, which gives users access to millions of short, animated images and videos, for $315 million in 2020. But the UK's Competition and Markets Authority ordered Meta to unwind that purchase the following year because it said the deal could attract even more users to Meta's portfolio of products.
It was the first time a major global regulator weighed in against a Silicon Valley giant to order the reversal of a deal after completion. It was also part of a broader movement among regulators that have rued lost opportunities to limit the scale of big tech firms as they bought up smaller rivals before they could become a threat.
Giphy, founded in 2013, built up a library of video clips and animated images that can be attached to messages. The CMA was concerned that the acquisition would allow Meta, parent of Facebook, WhatsApp and Instagram, to tighten its hold on users.
Tuesday's deal will allow New York-based Shutterstock to tap into Giphy's library of GIFs and stickers, which draws more than 1.3 billion search queries daily, the company said in a statement on Tuesday. Giphy licenses its content to partners including Facebook, Microsoft Corp., TikTok, Twitter and more. Its trove of short video loops of celebrities or cats furiously typing on laptops have become integral means of expression in casual social media communications.
Shutterstock said the purchase will be paid through cash on hand and an existing revolving credit facility. As part of the deal, Meta will enter into an API agreement that will ensure continued access to Giphy's content across its platform, the companies said. The deal is expected to close at the end of June.
