Shutterstock To Buy GIPHY From Meta Platforms For $53 Mln In Cash

(RTTNews) - Shutterstock, Inc. (SSTK), a provider of stock photography, said on Tuesday that it has inked a deal to acquire GIF library and search engine GIPHY, Inc. from Meta Platforms, Inc. (META), for $53 million.

Paul Hennessy CEO of Shutterstock, said: "We plan to leverage Shutterstock's unique capabilities in content and metadata monetization, generative AI, studio production and creative automation to enable the commercialization of our GIF library as we roll this offering out to customers."

GIPHY's content serves as an ingredient in text- and message-based conversations on platforms such as Meta, TikTok, Twitter, and many others.

The transaction will be funded through cash-on-hand and existing revolving credit facility.

GIPHY is expected to add minimal revenue in 2023, Shutterstock said in a statement.

In connection with the transaction, expected to be closed in June, Meta is entering into an API deal to ensure continued access to GIPHY's content across Meta's platform.

In addition, Shutterstock said that it has maintained its full year 2023 revenue outlook of $844 million-$853 million.

GIPHY is the collection of GIFs and stickers that supplies casual conversational content.

GIPHY's library of GIFs and stickers draws more than 1.3 billion search queries on a daily basis and serves over 15 billion daily media impressions.