Popular GIF search engine platform GIPHY is to be acquired by Facebook in a deal estimated to be worth $400 million. Facebook did not disclose the terms of the deal in its announcement today, but a report from Axios reveal the deal to be worth $400million.
Facebook has been using GIPHY’s API on the Facebook app, Messenger and WhatsApp for years but the company says GIPHY is joining to form part of the Instagram team. “People will still be able to upload GIFs; developers and API partners will continue to have the same access to GIPHY’s APIs; and GIPHY’s creative community will still be able to create great content,” Facebook announced.
Facebook plans to integrate GIPHY into Instagram Stories and Direct Messages in order to improve engagement and interaction. Facebook says 50% of GIPHY’s total traffic comes from its family of applications with Instagram already taking a 25% of that.
GIPHY has become the leader in creating animated shareable GIFs and other social media platforms such as Twitter, Pinterest, Reddit and Slack rely on its API. The platform’s API will still be available for use by other social media platforms as per Facebook’s announcement but it is not clear how long that will be since these platforms compete with Facebook.
Facebook plans to develop GIPHY even more, the company says “we’re looking forward to investing further in its technology and relationships with content and API partners.”