On Friday, Facebook Inc. (NASDAQ:FB) announced that it will acquire animated GIFs Company Giphy in a deal estimated to be around $400 million. The company is planning to integrate the extensive GIF library to its Instagram app.
Facebook to integrate Giphy into Instagram
Giphy is expected to continue operating its GIF library. In a statement, Facebook indicated that they are trying to establish ways people can express themselves in the right way. Giphy is among the larges sites for GIFs, and it offers a tool for creation, remixing, and sharing of GIFs. For years Facebook has been using the API of Giphy to source for GIFs for its apps, which include Instagram, Facebook app, Messenger as well as Whatsapp. Facebook indicated that around 50% of the traffic on Giphy is derived from its apps.
Already Giphy is integrated with apps of other companies such as Twitter Inc. (NYSE:TWTR) and Slack Technologies Inc. (NYSE:WORK). Also Apple Inc. (NASDAQ:AAPL) uses Giphy images for their GIF component in iMessenger. For now, it is unclear whether Facebook will terminate the relationship with the other companies to keep the feature only to its apps. However, Instagram has indicated that third-party companies could still use Giphy images.
Other companies to continue accessing Giphy APIs
Even after finalizing the deal, Giphy is expected to continue operating independently, although under the Instagram team. The objective is to make it easier in sending stickers and GIFs in direct messages as well as Insta Stories. Instagram’s Product VP Vishal Shah indicated that people will still be able to use GIFs, and also API partners and developers will still have access to the Giphy APIs. Shah added that the creative community of Giphy will continue creating great content.
The first time when Facebook tried to acquire Giphy was in 2015, barely two years since its establishment. At the time Giphy reportedly declined the acquisition as it pursued a partnership with different social media platforms and it raided around $17 million through a Series B funding soon after.