- GIPHY, the famous GIF website, is being acquired by Facebook, both companies announced Friday.
- GIPHY will become part of the Instagram team, and the site will continue to be available and operational, Facebook said in its blog post.
- Facebook has paid $400 million for the purchase according to Axios.
“By putting together Instagram and GIPHY, we will help people find the perfect GIFs and stickers in Stories and Guide,” Facebook executive Vishal Shah wrote in the post. “Many people in our community already know and love GIPHY. Actually, 50 percent of GIPHY’s traffic comes from the Facebook apps family, half from Instagram alone.”
GIPHY and Instagram already worked together to integrate GIFs into Instagram Stories and Direct Messages prior to the deal.
“Based on the success of those partnerships (and many others) we know there are exciting times ahead of us,” wrote GIPHY Friday in a Medium blog post. “GIPHY’s GIFs, Stickers, Emojis, etc. don’t go anywhere. We ‘re going to keep GIPHY available to the broader world.”
GIFs and stickers provide real, imaginative ways for people to express themselves. We see the positivity of how people today use GIPHY of our goods, and we know that putting the imagination and talent of the GIPHY team together with ours can only speed up how people use visual communication to communicate with each other said Facebook in a blog post.
GIPHY was founded in 2013 and has been the most popular GIF finding and uploading site ever since.
Since its inception in 2013, Giphy, based in New York, has raised some $150 million in VC funding from firms such as Betaworks (which incubated the company), Lerer Hippeau, IVP, DFJ Growth, GGV Capital and Lightspeed Venture Partners. Its most recent private valuation amounted to about $600 million.
Giphy is a huge video library, with hundreds of millions of daily users sharing billions of GIFs, creating revenue from branded content. Adding ad sales and marketing muscle to Facebook may be what turns it into a highly profitable company.