Facebook Acquires Giphy Company $ 400 Million

The acquired company provides a popular GIF photo sharing platform; it is expected to maintain branding and Facebook will join it on Instagram; Giphy’s latest valuation was $ 600 million

Facebook acquires Giphy  Company for $ 400 million. The acquired company provides a popular GIF photo sharing platform, based on short videos used as a means to create memes, social media comments or post.

Facebook has launched a new chatbot that it claims is capable of demonstrating empathy, knowledge and personality.

Giphy‘s latest valuation was about $ 600 million. The company has raised about $ 150 million from foundations in 2013 such as Betaworks, LightSpeed ​​and GGV. The company is expected to retain its branding and Facebook will join it on Instagram. Facebook, Wattsap and Messenger already have a built-in gipsy platform, so it’s unclear why it was not added to Instagram in the first place.

According to Axios, the talks between the two companies began even before the Corona crisis, but then it was a collaboration agreement rather than a full acquisition. It’s unclear what made Facebook choose to buy Giphy – perhaps the relatively low price estimate or experience from another competitor to buy it.

That’s also the main issue that Facebook will have to deal with now. Regulators are already examining the various acquisitions the social network has made in recent years, claiming some have been made in an attempt to block potential competitors. This is, for example, a claim that came up against the purchase of Wetsap at the time and is currently being investigated. The current purchase, while relatively small, also includes an element of blocking competition.
Giphy already has hundreds of millions of users and a rich and diverse library of gips. Its users share billions of gips a year and its main revenue model is based on branding of gips. However, a combination of Facebook’s online marketing and advertising platform may make Giphy much more profitable than it is today, which may partly explain the relatively low purchase price estimate

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Facebook Acquires Giphy Company $ 400 Million - /10

Summary

The acquired company provides a popular GIF photo sharing platform; She is expected to maintain her branding and Facebook will join her on Instagram; Giphy's latest valuation was $ 600 million

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