Facebook acquires Giphy For $400 Million, and plans to integrate its GIF library into Instagram

Facebook is buying Giphy, a web-based Gif search engine, and provides a huge GIF library to its users. Internet users can add these GIFs to their messages and social media accounts. According to a report by Axios, the Giphy deal is worth $400 million, while Facebook declined to disclose the terms of the deal.

Giphy has been be a central source for providing high-engaging content that is shareable. Giphy’s animated content can be found across Facebook’s family of apps and they are also available across other social networks and services on the internet.

Most importantly, Giphy is the provider of the built-in sticker and search feature for Facebook-owned Instagram. Giphy will continue to operate in the same capacity even after Facebook's acquisition. It is becoming a part of the Facebook-owned Instagram app. Giphy will also be made available to other applications owned by Facebook with existing as well as new integrations.

You will still be able to upload your own GIFs using Giphy. Facebook plans that Giphy will continue to operate under the same branding and it will also be able to offer integration to foreign developers.

Facebook states that the company will invest in Giphy for further technology development, and it will also build out new relations for Giphy. Facebook says that it will build out new relationships on both aspects for Giphy-the endpoint developer side, and the content side.

In a blog post Vishal Shah, VP of FB Product, explained that 50 percent of the traffic Giphy receives already comes from its family of apps such as Messenger, Instagram, Facebook app, and Facebook’s WhatsApp messaging service.

Here's how users are reacting about the development on social media:

Giphy was originally a simple search engine people used for searching GIFs, and it was founded back in the year 2013. The first significant product expansion of Giphy’s website was an extension with which introduced sharing content through Facebook. The extension was introduced by Giphy a year after it was founded, and Giphy added Twitter as the next integration quickly after its first product expansion. The latest data from Crunchbase displays that Giphy had raised around $151 million. Giphy was able to raise the amount across five rounds, that were backed by funders such as Lerer, Hippeau, DFJ growth, Betaworks, Lightspeed, and many more.

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