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Meta Reveals Selling Giphy For $347M Loss To Shutterstock

Meta’s calculated decision results in a $347 million loss as Giphy finds a new home with Shutterstock

Meta CEO

Shutterstock announced on Tuesday that Meta will sell Giphy to the stock photography company, ending Meta’s long-running battle over its acquisition.

The company will be sold for $53 million – a mega discount for Shutterstock as Meta bought it for $400 million back in 2020. However, according to Giphy, GIFs ‘have fallen out of fashion as a content form, with younger users, in particular, describing GIFs as ‘for boomers’ and ‘cringe’.

Giphy, a platform for finding animated photos in messaging apps, was already well-integrated into Meta’s ecosystem and a target for acquisition by the social media giant for years before Meta finally purchased it in 2020.

The final deal is expected to close in June, however, since the announcement – Shutterstock’s shares rose nearly 2%.

Though perhaps Shutterstock will begin charging users for the use of GIFs. In order to commercialize GIFs, Shutterstock might eventually attempt to restrict its re-publication in a manner similar to how it does with its conventional photographs. Although, branding and applying a Shutterstock watermark to every Giphy GIF on the internet could just help Shutterstock propel and make the most out of this deal.

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