Facebook parent Meta Platforms sells Giphy to Shutterstock at a $262M loss
Rob Kim
Shutterstock (NYSE:SSTK) on Tuesday agreed to acquire Giphy from Facebook parent Meta Platforms (NASDAQ:META) for $53 million in net cash. The deal ends a legal dispute that pushed the social media giant to sell the platform for sharing animated clips known as GIFs.
Shutterstock (SSTK) said the deal adds a mobile app with 1.7 billion daily users and partners that include Instagram, Facebook, WhatsApp, Microsoft (MSFT), TikTok (BDNCE), Samsung (OTCPK:SSNLF), Twitter, Slack (CRM) and Discord (DSCD).
Meta (META) last year said it would divest from Giphy after an antitrust authority in the United Kingdom affirmed an order to undo the $315 million acquisition, which closed in 2020.
The U.K. Competition and Markets Authority in 2021 had ordered Meta (META) to sell Giphy, saying the acquisition would hurt competition in social media and digital-display advertising.
Shutterstock (SSTK) plans to pay for Giphy with cash on hand and its revolving credit facility, and the deal is expected to close next month. The company will sign an agreement with Meta (META) to ensure ongoing access to Giphyâs content.
"Through the GIPHY acquisition, we are extending our audience touch points beyond primarily professional marketing and advertising use cases and expanding into casual conversations," Paul Hennessy, CEO of Shutterstock (SSTK), said in a statement.
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