Chat with Softimpact

SoftImpact

Meta Agrees to Sell Giphy to Shutterstock for a $347 Million Loss

Meta Agrees to Sell Giphy to Shutterstock for a $347 Million Loss

June 1, 2023

Meta's protracted legal battle over the acquisition of Giphy has finally concluded, as the company has agreed to sell Giphy to Shutterstock for $53 million. This price marks a significant decrease from the $400 million originally paid by Meta in 2020. Giphy argued that GIFs have lost popularity as a content form, with younger users dismissing them as outdated and cringeworthy.

 

To recap, Meta announced the acquisition of Giphy in 2020 with the intention of integrating Giphy's extensive GIF network into its various tools. However, the UK's Competition and Markets Authority (CMA) challenged the deal, expressing concerns about Meta gaining an unfair advantage in the digital ads market.

 

After a series of legal exchanges, the CMA ultimately ordered Meta to divest Giphy in October of last year. Giphy argued that it was no longer worth the $400 million offered by Meta and that no other company would consider acquiring it. The CMA believed that Meta could leverage Giphy's reach to strengthen its dominance in the ads space, prompting the ruling that will result in Meta incurring a loss of $347 million from the canceled deal.

 

Given Meta's overall financial challenges, obtaining any amount for the app is likely a relief. However, it is a disappointment for Mark Zuckerberg and his team, who originally envisioned a broader plan for GIF integration and usage. Nevertheless, Meta has shifted its focus to the metaverse and generative AI, and with ongoing staff cuts and prioritization efforts, GIFs were unlikely to remain a central element.

 

The argument that GIFs would help Meta dominate the ads market appeared tenuous from the start. Nonetheless, the CMA seemingly felt compelled to take a stand due to broader concerns about Meta's digital ads dominance, with the Giphy acquisition becoming the focal point.

 

For users, the practical impact is expected to be minimal. Giphy will still be supported through third-party integrations in various applications. As Giphy itself acknowledges, GIFs no longer hold the same cultural significance they once did when Meta acquired the platform in 2020.



LET’S START A NEW PROJECT TOGETHER!



September 11, 2023

Becoming a junior developer is a promising career choice. Junior developers play a crucial role in the software development process, working alongside experienced developers to create and maintain software applications. If you're passionate...

September 01, 2023

If you're a programmer, you might find yourself pondering why you're still single despite your intelligence, ambition, and computer prowess. There are several factors that contribute to why many programmers remain unattached in the dating...

July 31, 2023

Having a mobile app for your small business is no longer just a luxury reserved for big corporations. With the widespread use of smartphones and mobile devices, businesses of all sizes can benefit greatly from having a mobile app. Here are five...

July 25, 2023

Linda Yaccarino, the CEO of the company, tweeted about the rarity of second chances, either in life or business, to create a lasting impact. Little did Twitter's followers know that this sentiment would soon manifest in a major rebranding...

July 21, 2023

Windows takes a significant leap forward as the ultimate platform for developers to create tailored AI experiences for their customers with the inclusion of Llama 2 models. This development further solidifies Windows' position by providing...

Load More Load More
Softimpact. All Rights Reserved © 2023 | Privacy Policy

GET IN TOUCH

SITEMAP

© 2023, Softimpact. All Rights Reserved | Privacy Policy

COME FOR A CHAT
COFFEE ON US...

Aamal Center, 6th floor,
Barbar Abou Jaoude Street
Jdeideh Highway - Lebanon
Contact Phone Tel: +961 1 890 888
Fax: +961 1 890 999
2, Genevis Street,
GENEVA COURT, Flat 301
3116 Limassol - Cyprus
Contact Phone Tel: +357 25 338 379
Fax: +357 25 338 379

FOLLOW US ON