Shutterstock to buy Giphy from Meta for $53m

Shutterstock said on Tuesday that it has agreed to buy Giphy from Meta Platforms for $53m in cash.

Giphy is the world's largest collection of GIFs and stickers that supplies casual conversational content.

Meta bought Giphy for $400m in 2020. However, the UK’s Competition and Markets Authority ordered Meta to sell the business in 2021 and then again last October, on the grounds that the merger reduced competition.

Shutterstock said the acquisition is expected to add minimal revenue in 2023 with focused monetisation efforts taking place over the course of 2024.

The company’s chief executive officer, Paul Hennessy, said: "This is an exciting next step in Shutterstock's journey as an end-to-end creative platform.

"Shutterstock is in the business of helping people and brands tell their stories. Through the Giphy acquisition, we are extending our audience touch points beyond primarily professional marketing and advertising use cases and expanding into casual conversations."

The deal is expected to close in June.