On Friday morning, it was announced on Facebook news portal that Facebook has agreed to purchase Giphy for 400$ million. The talks about the purchase began talking before the pandemic. Facebook however, did not mention any changes coming to Giphy. For example, removing Giphy from the non-Facebook properties – but, Facebook did mention that almost half the traffic for Giphy cones from Facebook properties which include Facebook, Facebook Messenger, Instagram and WhatsApp.
Facebook is the social media and social networking giant
Giphy is an online database and search engine that allows users to search for and share short looking videos with no sound. Something like animated GIF files.
The talks of this acquisition stated between the two companies in February – before the pandemic. It is said that the talks were at that time more focused on a partnership between the two companies – and not acquisition.
Facebook has been using Giphy API for years and it has been one of the most useful features that has added to its platform. Even for a common user, it’s impossible to be on Facebook without seeing a GIF or two from Giphy.
The company also mentions that they are looking forward to investing further in this technology and with the content and API partners. Facebook also assured that people will still be able to upload GIFs, developers and API partners will be able to continue to access Giphy’s API as it did before the acquisition. The most important announcement was that Giphy’s creative team will be able to continue to create great content!
Was this a costly affair?
This is one of the major acquisitions – agreed. But, it was also one of the cheaper ones for Facebook. Over the past decade or so, starting with Instagram, Facebook has been buying up other apps and services. Their empire has been growing. They have paid a fortune for Instagram and even WhatApp for that matter. Another noteworthy acquisition was it’s venture into VR with Oculus. In comparision, Giphy stands to be one of the cheaper acquisitions for Facebook.
– Facebook bought Instagram in 2012 for $1 Billion. At that time it was perceived to be too much payment for a photosharing app that works only on iOS. Today we understand that it was a worthy investment.
– Facebook also purchased WhatsApp a few years later for $19billion. This was among the greatest deals in the silicon valley.
– Facebook also purchased Oculus for VR for about $4 billion
Paying $400 million for Giphy does not drill a hole through the pockets in comparison. Further – there is potential that Facebook sees. People are unlikely to stop using and sharing GIFs to express themselves on social media platforms.
The purchase definitely seems to be a wise move and Giphy has a long way to go. With Facebook as a parent company, it will see growth in new and innovative ways for users.