May 23, 2023 - Economy

Meta will sell Giphy to Shutterstock, after antitrust ruling

Illustration of Meta’s logo wrapped around a gavel.

Illustration: Shoshana Gordon/Axios

Meta has agreed to sell Giphy, a platform of sharable animated images and microvideos, to Shutterstock for around $53 million in cash.

Why it matters: This is the first time Meta has been forced by antitrust regulators to sell an asset.

Backstory: Meta, then still known as Facebook, paid around $400 million to buy Giphy in 2020. At the time we suggested the deal might run into antitrust scrutiny, which it ultimately did in the U.K.

  • Shutterstock's deal is expected to close next month, and Meta entered into an API agreement so that Giphy's content can continue to appear on its platform.

The bottom line: Shutterstock got a three-alarm fire sale price, both due to the regulatory mandate and the fact that Giphy's business has been in prolonged limbo while the situation played itself out.

Go deeper