Meta Sells Giphy to Shutterstock for $53 Million

Meta loses $262 million on Giphy acquisition after UK regulators forced a sale.

Credit: Reuters

After purchasing Giphy for $315 million in 2020, Meta has agreed to sell the animated images platform to Shutterstock for $53 million. The sale comes after the UK's Competition and Markets Authority (CMA) ordered Meta to divest Giphy, citing concerns that the deal would give Meta too much control over the GIF market.

The CMA argued that Meta could use its control over Giphy to restrict competitors' access to GIF content, which could harm competition in the social media and advertising markets. Meta had argued that the CMA's concerns were unfounded but the company ultimately agreed to sell Giphy rather than appeal the CMA's ruling.

The sale of Giphy is a major setback for Meta, which has been under increasing scrutiny from regulators around the world. The deal also raises concerns about the future of Big Tech acquisitions, as it is the first time a global regulator has forced a tech giant to sell a company that it has already acquired.

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• Meta sells Giphy to Shutterstock for $53 million

• The sale came after UK regulators forced the sale

• CMA argued that Meta could use its control over Giphy to restrict competitors' access to GIF content

• Meta had argued that the CMA's concerns were unfounded

• The sale of Giphy is a major setback for Meta

• The deal raises concerns about the future of Big Tech acquisitions