Facebook and Giphy declined to disclose the purchase price of the transaction, but according to Axios, the purchase price of the transaction is about $400 million.
The announcement of this acquisition comes at a time when Facebook is being investigated by government regulators for antitrust issues.
According to TechCrunch, in 2015, Giphy flatly rejected the offer to buy from Facebook and chose to continue integrating its products with multiple social media platforms.
In response to earlier negotiations between the two parties, both companies declined to comment.
The two companies said that Giphy will become part of Facebook’s photo-sharing website Instagram. They said that its GIF library, which can be integrated with other applications, will be further integrated into other applications under Instagram and Facebook.
Instagram product vice president Vishal Shah said in a blog post, “People can still upload GIFs; developers and API partners will continue to have the same access to Giphy ’s API; Giphy ’s The creative community will continue to create rich content. “
Giphy’s blog post on Medium, a blog post, said, “We will continue to keep Giphy open to the wider ecosystem.”
The American Economic Freedom Project (AELP), a Washington-based antitrust propaganda group, urged government regulators to investigate and block the acquisition.
Sarah Miller, executive director of the group, said the merger of Facebook and Giphy is the latest example of the Federal Trade Commission ’s antitrust inaction. Google, an Alphabet company, acquired the GIF platform Tenor in 2018 and integrated it into its own image search function. Miller said this disrupted the market competition created by Giphy.
She said, “Now, Facebook repeats this behavior, and it will become more powerful.”
A Facebook spokesperson said that Giphy’s current integration with social platforms such as Twitter, Snapchat, and TikTok, owned by ByteDance, will not change.
The spokesperson also said that GIF does not have online tracking mechanisms such as cookies. Privacy advocates worry that the online tracking mechanism will allow social media such as Facebook to actively collect personal data for targeted advertising business.
In response to the above information, the Federal Trade Commission did not immediately respond to requests for comment from the media.
Facebook’s blog post says that 50% of Giphy’s traffic already comes from Facebook’s apps, half of which comes from Instagram.