Shutterstock will acquire Jiffy from Meta for $53 million in cash, complying with a U.K. regulator’s order to divest the animated-image platform due to competition concerns.
Shutterstock, an American provider of stock photography, footage, music and editing tools, has announced the acquisition of popular animated image platform Giphy Inc. Meta Platforms Inc,
Per the statement, Shutterstock is acquiring Giphy at an incredibly discounted price of $53 million, after Meta paid $400 million for the platform in 2020. The purchase is being made in response to an order from the UK competition regulator, which required Meta. to sell the company last year due to concerns about potential access limits to competition.
Meta’s losses from Giphy sale exceed $345 million
The sale of Giphy is causing Meta a multimillion-dollar loss, which exceeds $345 million. Reports indicate the social media giant was interested in getting giphy for several years, but company executives were unwilling to sell it as they were in a “critical growth phase”.
Meta failed to leverage the company as expected since the start of its acquisition, while facing legal problems with regulators due to a potential monopoly. The deal marks the first time a US technology company has been forced to sell a company by foreign regulators.
As informed of Per Coinspeaker, this was the best quarter for the company since 2012, despite the multimillion-dollar loss resulting from the sale of Meta to Giphy. Year-to-date, Meta’s shares are up more than 104%, from $122.30 to $250.47, the current price at the time of writing.
According to Meta CEO and co-founder Mark Zuckerberg, the Development Meta’s stock count during Q1 is primarily due to the company’s work in the area of artificial intelligence.
Shutterstock Reaches Over 1.7 Billion Giphy Daily Users
The Giphy acquisition will give Shutterstock significant growth to its more than 1.7 billion daily users, so the company is content to receive “minimal revenue” from Giphy during the course of the year.
However, they plan to implement strategies to improve Giphy’s revenue generation from 2024 onwards, as the company has a vast repository of animated images and stickers used on major social media platforms such as Facebook, Instagram, TikTok and Microsoft Teams. Known for.
Paul Hennessy, CEO of Shutterstock, expressed enthusiasm about the acquisition, considering it an important step in the company’s evolution as an “end-to-end creative platform”.
While the agreement is expected to be finalized next month, shares of Shutterstock reacted positively to the news, rising as much as 4% before the market open.
Therefore, this acquisition represents a strategic move by Shutterstock to expand its creative platform by integrating the extensive collection of GIF images and stickers offered by Giphy.
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