06 August 2020
Facebook has announced its plans to acquire GIPHY, the world's largest GIF creation and sharing platform. It did not reveal financial aspects of the deal but an Axios report claims it to be worth about $400 million. The deal will see GIPHY's services getting deeply integrated with Instagram and other Facebook apps.
The official press release mentions that about 50% of traffic that GIPHY receives comes from Facebook and its apps. And to make things more interesting, Instagram itself is responsible for 50% of that traffic. This is not surprising as Instagram direct messages offer integration with GIPHY to help users search and send GIFs.
It has been making use of GIPHY APIs to achieve the functionality where it is able to import GIFs from the platform. This is applicable for all Facebook-owned apps including the main Facebook app. With the deal in place, we can expect to see a deeper level of integration between Facebook and GIPHY.
As of now, GIPHY users will see or feel no difference in their usage of the platform. Everything will remain unchanged for the time being and until a new announcement is made. It is worth noting that GIPHY is used as the GIF provider by many other social media platforms that compete directly with Facebook. It will be interesting if Facebook will make any changes to the integration of the platform with other players in the market.