Facebook acquired Giphy in 2020 for its animated-GIF search engine.
Giphy was founded in 2013 by Alex Chung and Jace Cooke as a search engine and database for animated GIFs. The service quickly expanded beyond a standalone website, supplying GIFs for messaging apps, social networks, and other online products through search tools and developer integrations.
Facebook announced the acquisition in May 2020. The company said Giphy would become part of Facebook’s broader Instagram team and that its library and creative tools could be integrated more closely with Instagram and other products. The reported deal value was approximately $400 million.
The acquisition attracted regulatory scrutiny, especially in the United Kingdom, because Giphy also provided GIF services to competing platforms. Britain’s Competition and Markets Authority ultimately required Facebook’s parent company to sell Giphy, and Shutterstock announced an agreement to acquire Giphy in 2023.