Facebook acquires Giphy for $400 million and plans to integrate it with Instagram

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(Edited)/Photo by Alex Haney on Unsplash

Facebook has acquired the Gif sharing platform Giphy, the deal valued around $400 million, reports Axios. Facebook confirmed the same on their official blog later but did not comment on the value of the deal, Facebook is planning to integrate the entire Giphy library with Instagram.

A source close to the situation said Axios that the deal was in talks before the pandemic has hit but the deal was only about a partnership but not an acquisition, Facebook says that most of the Giphy's traffic(50%) comes from Facebook-owned social media sites like Instagram, Facebook, WhatsApp, etc.

Facebook also says in their blog that Giphy will stay mostly as it is, users may seem no difference in using it after this acquisition, Giphy is a platform where it's content was integrated with a lot of other platforms and apps like social media and keyboard apps.

Facebook says that all the API partners will continue to use the Giphy's library, this is good news for many smartphone users because Gifs are one of the most shared content on Social media and most of those Gifs are from Giphy as Giphy serves more than 1 billion gifs on daily basis.

Giphy currently has 200 million daily and 250 million monthly users, the New-York based Giphy valued around $600 million in a recent private evaluation. 

Facebook says that "GIFs and stickers give people meaningful and creative ways to express themselves. We see the positivity in how people use GIPHY in our products today, and we know that bringing the GIPHY team’s creativity and talent together with ours will only accelerate how people use visual communication to connect with each other"