The GIFs & Animated stickers platform; Giphy has been taken over by Facebook in a recent deal, the news was first bought in light by Axios later it was confirmed by Facebook’s official handle with a video post welcoming Giphy to its family
While there is no official valuation of the deal, Axios reported it to be $400M.
Background: In 4 series Giphy raised a total of $150M in funding from VCs, the latest being in 2016 and it has 50-100 employees; according to Crunchbase, prior to this acquisition Ghipy was at a valuation of $600M as reported by WSJ.
In a recent Facebook Newsletter post by the VP of Instagram (A Facebook company), Vishal Shah pointed out the idea behind the deal, in the blog he wrote, “By bringing Instagram and GIPHY together, We can make it easier for people to find the perfect GIFs and stickers in Stories and Direct,”.
Giphy’s existing users and developers are not to be affected in any manner as of now, they can use the platform as they have been, he also added, “People will still be able to upload GIFs; developers and API partners will continue to have the same access to GIPHY’s APIs, and GIPHY’s creative community will still be able to create great content,”.
50% of Giphy’s users are from the Facebook group of applications while Instagram being the prominent one, as Ghipy is to be further integrated with Instagram it is also told that it will be under team Instagram.
Tenor; another similar platform was recently acquired by Google.