Meta bought Giphy for $315 million in 2020 but is now selling it to Shutterstock for $53 million

Per CNBC

Shutterstock is now buying Giphy from Meta at a massive discount. Facebook's parent company purchased Giphy for $315 million in 2020 but was now selling it for a cash deal worth $53 million.

In 2020, when the company bought Giphy for $315 million, UK's competition authority ordered Meta to divest the company. Shutterstock said the acquisition would only result in "minimal revenue in 2023."

When Meta bought Giphy, it was ordered by UK's Competition and Markets Authority to divest its recent acquisition in 2022. The reason behind the order was reportedly due to "anti-competitive effects."

In June 2020, the CMA disclosed that it was probing the deal. Aside from that, the CMA also blocked another major acquisition in April involving Microsoft and Activision, which would have been worth $69 billion.

This comes as tech companies have been facing increased acquisition scrutiny in the UK and the US due to user data collection.

Meta gave a statement to CNBC regarding their experience with Giphy and described the situation as an "uncertain time for their business." The company's spokesperson still thanked the Giphy team.

“We are grateful to the Giphy team during this uncertain time for their business, and wish them every success,”

In October, while Meta was still doubling down on the metaverse, its own employees found the company's flagship VR metaverse app too buggy to use, per the executive in charge. This came despite CEO Mark Zuckerberg pouring billions per year into building his vision of the metaverse.

In March, Meta was reportedly looking at the possibility of creating another standalone app that would compete with Twitter. The app would have reportedly been a decentralized social network allowing users to share text updates.

A Meta spokesperson shared that they believed there was an opportunity for this market and that it would allow creators and public figures to share updates.

See flow at unusualwhales.com/flow.

Other News:

Resources:

CNBC

tastytrade logo+
Get the best broker for options trading and earn Unusual Whales discounted! in cash with an eligible account deposit at tastytrade. Get an Unusual Whales bonus when you deposit $2000. Offer expires 3/31/25. Certain restrictions, terms and conditions apply.
Unusual Whales does not confirm the information's truthfulness or accuracy of the associated references, data, and cannot verify any of the information. Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Options, investing, trading is risky, and losses are more expected than profits. Please do own research before investing. Please only subscribe after reading our full terms and understanding options and the market, and the inherent risks of trading. It is highly recommended not to trade on this, or any, information from Unusual Whales. Markets are risky, and you will likely lose some or all of your capital. Please check our terms for full details.
Any content on this site or related pages are not intended to provide legal, tax, investment or insurance advice. Unusual Whales Inc. is not registered as a securities broker-dealer or an investment adviser with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority (“FINRA”) or any state securities regulatory authority. Nothing on Unusual Whales should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security by Unusual Whales or any third party. Certain investment planning tools available on Unusual Whales may provide general investment education based on your input. You are solely responsible for determining whether any investment, investment strategy, security or related transaction is appropriate for you based on your personal investment objectives, financial circumstances and risk tolerance. You should consult your legal or tax professional regarding your specific situation. See terms for more information.