Shutterstock Inc, a leading creative content marketplace, has made an exciting move by acquiring Giphy Inc from Meta Platforms Inc. The acquisition, valued at $53 million in cash, comes after Meta’s agreement to divest Giphy due to competition concerns. This strategic decision opens up new opportunities for Shutterstock to strengthen its position as an end-to-end creative platform and further expand its offerings to users worldwide.
The acquisition of Giphy addresses previous competition concerns raised by the British competition regulator. In order to ensure a fair marketplace, Meta was required to sell Giphy to prevent any potential denial or limitation of access to competitors such as Snapchat Inc and Twitter. Meta had initially acquired Giphy for a substantial amount of $400 million in 2020, making this divestiture a significant development in the tech industry.
With the completion of this acquisition, Shutterstock expects the deal to be finalised in the coming month. While Giphy is projected to contribute “minimal” revenue in the current year, Shutterstock has strategic plans to enhance revenue generation from 2024 onwards. CEO Paul Hennessy expressed his enthusiasm about this milestone, highlighting the valuable growth prospects it brings to Shutterstock as an end-to-end creative platform.
One of the key advantages of the Shutterstock-Giphy merger is the access it grants to a vast collection of animated content. Giphy boasts the world’s largest repository of animated images, including the popular GIFs and web-based stickers used across various platforms like Facebook, Instagram, TikTok, and Microsoft Teams. With official submissions from renowned media giants such as Disney and Netflix, Giphy’s content attracts a staggering 15 billion daily impressions. By integrating Giphy’s extensive collection, Shutterstock aims to enhance its offerings and provide a more diverse range of visual assets to its user base.
The acquisition of Giphy also expands Shutterstock’s reach to a broader audience. Giphy’s user base comprises approximately 1.7 billion daily users, creating substantial opportunities for Shutterstock to connect with new customers and strengthen its global presence. This access to a massive user base aligns with Shutterstock’s vision of being a comprehensive solution for creators and businesses seeking high-quality visual content.
As the acquisition progresses, Shutterstock is poised to unlock new revenue streams and solidify its position as a leading creative platform. By integrating Giphy’s animated content and leveraging its extensive user base, Shutterstock can enhance the user experience and provide a more seamless creative process. This strategic move demonstrates Shutterstock’s commitment to innovation and its dedication to meeting the evolving needs of its customers.
The acquisition of Giphy by Shutterstock marks a significant milestone in the creative content industry. With access to Giphy’s extensive collection of animated content and a vast user base, Shutterstock is well-positioned to expand its offerings, strengthen its market presence, and create new avenues for revenue growth. As the deal progresses, users can look forward to a more vibrant and diverse creative experience while Shutterstock continues to lead the way as a comprehensive solution for all their visual content needs.