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Meta Agrees to Sell Giphy to Shutterstock for a $347 Million Loss

Meta has agreed to sell Giphy to Shutterstock for $53 million, ending a long legal battle over the GIF-sharing platform. The deal is still subject to regulatory approval.

Meta Sells Giphy to Shutterstock

After a long legal battle, Meta has agreed to sell Giphy to Shutterstock for $53 million. The deal is still subject to regulatory approval, but it is a significant victory for the CMA, which had argued that the acquisition would give Meta an unfair advantage in the digital advertising market.

Giphy is a popular GIF-sharing platform with over 700 million monthly active users. Meta acquired the company in 2020 for $400 million, but the deal was quickly challenged by the CMA. The CMA argued that the acquisition would give Meta a monopoly on the GIF market, which would allow it to charge higher prices for advertising.

Meta argued that the acquisition would not harm competition, but the CMA was not convinced. The CMA ordered Meta to sell Giphy in October 2021, and the company has now agreed to do so.

The sale of Giphy to Shutterstock is a significant loss for Meta. However, it is also a sign that the company is taking the CMA's concerns seriously. Meta is facing a number of challenges, including slowing user growth and increased competition from rivals such as TikTok. The sale of Giphy may help Meta to focus on its core businesses and to avoid further regulatory scrutiny.

It remains to be seen what Shutterstock will do with Giphy. The company has said it plans to keep Giphy as a standalone business, but it is possible that Shutterstock will eventually integrate Giphy's GIF library into its own products.

The sale of Giphy is a sign of the changing landscape of the digital advertising market. As more and more people turn to mobile devices for their online activity, companies are looking for new ways to reach their target audiences. GIFs are a popular form of mobile content, and their popularity is only likely to grow in the years to come.

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