Facebook Acquires Giphy for $400 Million, Raising Privacy and Antitrust Concerns

Facebook has acquired Giphy, the largest GIF archive on the web, for $400 million. The deal, announced on May 15, 2020, integrates Giphy into Instagram's team. Facebook plans to deepen Giphy's integration with its apps, including Instagram, Facebook, Messenger, and WhatsApp. Prior to the acquisition, 50% of Giphy's traffic came from Facebook-owned platforms. Giphy was founded in 2013 by Alex Chung and Jace Coke as a search engine and evolved into a platform for creating and sharing GIFs, stickers, and arcade games. It attracts over 700 million daily users and hosts over 10 billion GIFs. The acquisition raises privacy concerns due to Facebook's history of data scandals, including Cambridge Analytica. Antitrust issues also arise as Facebook has previously acquired Instagram, WhatsApp, and Oculus VR, prompting bipartisan concerns from U.S. senators. Giphy's 131 employees will join Instagram. Giphy has also fostered a creative community around GIF art, launching initiatives like the MoGA virtual reality museum and the Giphy Film Fest for microfilms under 18 seconds.