Shutterstock Inc (SSTK.N) announced on Tuesday that it would buy animated-images Giphy Inc from Meta Platforms Inc (META.O) for $53 million in cash, months after Facebook decided to divest the company due to competition concerns.
Last year, Britain’s competition authority ordered Meta to sell Giphy over concerns that it could restrict Snapchat Inc (SNAP.N) and Twitter’s access to the target’s material.
Meta bought New York-based Giphy for $400 million in 2020. However, Britain’s Competition and Markets Authority disputed the acquisition a year later, forcing a U.S. tech giant to sell an acquired company for the first time.
Shutterstock, anticipating the purchase to finish next month, climbed 4% premarket. Giphy stated it would add “minimal” revenue this year and increase revenue from 2024.
“This is exciting next step in Shutterstock’s journey as an end-to-end creative platform,” stated CEO Paul Hennessy.
Giphy has the greatest collection of animated GIFs and web-based stickers for Facebook, Instagram, TikTok, and Microsoft Teams. 15 billion people view its material, which includes Disney and Netflix entries.
Shutterstock says Giphy will provide access to 1.7 billion daily consumers.