In an unexpected turn of events, Meta has decided to sell Giphy to Shutterstock for a far lower price of $53 million. The decision was made due to low internet interest in GIFs and regulatory pressure from UK authorities, especially the Competition and Markets Authority (CMA), which mandated the sale.
Meta initially purchased Giphy for $315 million in 2020, resulting in a $262 million loss for the firm. Meta’s issue has been to find a suitable buyer for Giphy at a time when GIFs are less popular than they were three years ago.
Despite this, the acquisition by Shutterstock bodes well for the GIF library’s future.