SPY304.32+1.35 0.45%
DIA254.29-0.06 -0.02%
IXIC9,489.87+120.88 1.29%

Facebook Acquires Giphy, Reportedly For $400M

Facebook Inc. (NASDAQ: FB) late Friday announced it had acquired popular graphics interchange format, or GIF, files platform Giphy.

Benzinga · 05/18/2020 09:11

Facebook Inc. (NASDAQ: FB) late Friday announced it had acquired popular graphics interchange format, or GIF, files platform Giphy.

What Happened

According to Axios, which first reported the news, Facebook has shelled $400 million for the animated images database and search engine.

Facebook said that Giphy will join subsidiary Instagram's team.

"[Giphy] makes everyday conversations more entertaining, and so we plan to further integrate their GIF library into Instagram and our other apps so that people can find just the right way to express themselves," the social media company said in a statement.

According to Facebook, half of Giphy's traffic comes from Facebook and subsidiaries, including 25% from Instagram alone.

Uncertainty Over Giphy's Integration With Other Platforms

The Menlo Park-based company suggested it intends to invest further in Giphy's "technology and relationships with content and API partners," but it's not immediately clear if the short video database platform will continue to integrate with other social networks.

Twitter Inc. (NYSE: TWTR), TikTok, Apple Inc.'s iMessage, Slack Technologies Inc. (NYSE: WORK) all integrate Giphy using its API, and according to the Verge, they might all reconsider the platform following the acquisition.

Apple and Twitter both stand in contrast to Facebook when it comes to their stance on user privacy, the Verge noted, and the integration "seems likely to pose some tensions going forward."

Price Action

Facebook shares closed nearly 2% higher at $210.88 on Friday and traded mostly unchanged in after-hours.

Image Credit: Courtesy of Facebook.com