According to Facebook, about half of Giphy’s current traffic already comes from Facebook products, especially Instagram. That’s perhaps unsurprising, given that Facebook’s big three apps—WhatsApp, Instagram, and flagship Facebook—have literally billions of daily users among them.
“We’ve used Giphy’s API for years, not just in Instagram, but in the Facebook app, Messenger and WhatsApp,” Facebook said in a statement. “Giphy will continue to operate its library (including its global content collection), and we’re looking forward to investing further in its technology and relationships with content and API partners.”
Giphy, a New York based company, was, in fact, the first service to make animated images work on Facebook. It created a workaround back in 2013, and now has a large database of gifs that users can search and share across platforms.
Facebook has acquired more than 80 companies, according to Crunchbase. Its most recent acquisition was video game development startup Sanzaru Games in February 2020. It also bought Scape Technologies earlier in February.
Giphy has around $150 million in funding from investors including Lightspeed Venture Partners and DFJ Growth, according to Crunchbase. It last raised money with its $72 million Series D in October 2016. Post-Series D, it had a valuation of about $600 million.
According to axios, Facebook is facing enormous blowback over its previous acquisitions, which means that this deal, however small by comparison, is likely to face a lot of antitrust scrutiny by regulators. The tech giant is currently under investigation by federal and state lawmakers for antitrust.