Giphy, styled as GIPHY, is an American online database and search engine that allows users to search for and share short looping videos with no sound, that resemble animated GIF files.
Facebook, Inc. (NASDAQ: FB) reportedly has agreed to acquire Giphy. Giphy will retain its own branding, including its primary integration to Facebook’s Instagram platform. Giphy has raised around USD 150 Million since 2013 from GGV Capital, Lightspeed Venture Partners and much more.
Previous acquisition of the social media giant have sparked controversy, this deal may come under the investigation of regulators. Currently, federal and state lawmakers are looking into the company in regards to antitrust.
Giphy will contribute massive value to Facebook as it has a massive video library with millions of daily users that share GIFs that generate revenue via branded content. Facebook’s ad sales and marketing firepower could transform it from a popular service into a huge profit.