Meta Sells Giphy To Shutterstock For $53 Million In UK Regulator Ordered Sale

Shutterstock (SSTK) shares advanced in early trading on Tuesday morning after the provider of stock footage said it was buying animated images platform Giphy from Meta Platforms (META) for $53 million.

Meta’s purchase of Giphy for a reported $400 million in 2020 was challenged by Britain’s Competition and Markets Authority over concerns the deal could limit access to GIFs by other social media sites. Last year, the regulators ordered Meta to sell it. 

Shutterstock CEO Paul Hennessy called the deal “an exciting next step” for the company. He explained that with the acquisition, “we are extending our audience touch points beyond primarily professional marketing and advertising use cases and expanding into casual conversations.”

1.7 Billion Users

Shutterstock noted that adding Giphy gives it access to 1.7 billion daily users, and the Giphy library of GIFs and stickers attracts more than 1.3 billion search queries each day.

The company indicated that as part of the agreement, Meta will insure continued access to Giphy’s content across Meta platforms. It said the transaction is targeted to close next month.

Shares of Shutterstock were up almost 4% on the news Tuesday morning before retreating lower later in the day. Meta shares rose 1% earlier in the day, but dropped lower later.