Most of the world might be tightening its belt as the economy stumbles thanks to the coronavirus pandemic, but don’t count Facebook among them! According to a report first published Friday by Axios, the social media giant is buying GIF-making and sharing website Giphy for an enormous $400 million.
It plans to integrate the Giphy GIF library into Instagram and assorted other Facebook apps. While Facebook says that Giphy’s core service isn’t going to change, users should expect it to be even easier to send fun animated GIFs in apps like Messenger and WhatsApp.
Axios says that Facebook and Giphy began talking prior to the pandemic. Originally, they were discussing a partnership. However, this clearly developed into something else.
Welcoming Giphy to the Facebook family
In a Facebook blog post, Vishal Shah, VP of Product, noted that 50% of Giphy’s traffic comes from the Facebook family of apps. Half of it comes from Instagram alone.
“By bringing Instagram and GIPHY together, we can make it easier for people to find the perfect GIFs and stickers in Stories and Direct. Both our services are big supporters of the creator and artist community, and that will continue. Together, we can make it easier for anyone to create and share their work with the world.
We’ve used GIPHY’s API for years, not just in Instagram, but in the Facebook app, Messenger and WhatsApp. GIPHY will continue to operate its library (including its global content collection), and we’re looking forward to investing further in its technology and relationships with content and API partners. 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.”
Facebook is one of the biggest spenders when it comes to acquisitions. Since 2005, it has acquired 82 other companies. The most expensive of these was WhatsApp for $16 in 2014. By comparison, $400 million is small change.
