Axios reports that Facebook will buy the popular GIF/animated pictures app and website Giphy for $400 million, as per the report:
Background: A source close to the situation says that the two companies first began talking prior to the pandemic, although that was more about a partnership than an acquisition.
- Giphy is expected to retain its own branding, with its primary integration to come via Facebook’s Instagram platform.
- New York-based Giphy had raised around $150 million in VC funding since its 2013 inception, from firms like Betaworks (which incubated the company), Lerer Hippeau, IVP, DFJ Growth, GGV Capital, and Lightspeed Venture Partners. Its most recent private valuation was around $600 million.
In a Medium post, Giphy explains more about the change, highlighting they will join Instagram.
That’s why we’re thrilled to announce that GIPHY has been acquired by Facebook and is joining the team at Instagram. Instagram has revolutionized self-expression. More than 1 billion people use Instagram to communicate how they’re feeling and what they’re passionate about — we can’t wait to help those people become even more animated! We’ve had a lot of fun teaming up with Instagram over the years; GIPHY’s Stickers were the perfect fit for layering on Instagram Stories, while our GIF search allowed everyone to capture that perfect emotion in Instagram’s DMs. Based on the success of those collaborations (and many others) we know that there are exciting times ahead of us.
Facebook says it will hope to use Giphy further development integration with its own services, and adds that around half of the traffic through Giphy comes through Facebook-owned services. Giphy first launched in 2013 and has grown into the Google of GIFs and animations. The service started to grow when it expanded into popular apps such as Facebook, and directly into the Twitter app.