Facebook is buying the popular GIF-making website Giphy for about $400 million. After acquiring Giphy, Facebook plans to integrate it with its network of apps including Instagram and other Facebook-owned apps.
The news about the acquisition was first reported by Axios and as per them, the estimated deal value is $400 million.
For the uninitiated, Giphy is a popular GIF website that helps anyone to create, upload, share, and even remix GIF files easily. Numerous websites and apps are already using GIPHY to make use of the vast GIF library including Facebook.
Facebook and Instagram have been using Giphy’s API for several years to incorporate GIF files into their apps. Users were able to send required GIF from Giphy via Instagram and other Facebook-owned apps.
According to the blog post, more than 50 percent of the total Giphy users come from Facebook-owned apps like WhatsApp, Instagram, Messenger, etc. And about half of that comes from Instagram alone.
Vishal Shah, VP of Instagram said, “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.”
After the deal is done, Facebook’s plan is to integrate Giphy with Instagram. The Instagram team will make it easier for users to search and use GIF files more efficiently.
Soon after this, Facebook is also planning to integrate Giphy with all other apps like the Facebook app, Messenger, WhatsApp, Instagram to bring easy GIF access to these apps.
Every service and other websites/apps using Giphy’s API to source GIFs will continue to get access to these, even after the acquisition. Few companies that uses Gihpy’s API are Twitter, Pinterest, Reddit, etc