Facebook buys GIF search engine startup Giphy for around $400 million

Facebook announced Friday it is acquiring the animated-picture platform Giphy. The deal is valued at around $400 million, according to the news first reported by Axios. This is a strategic acquisition for the social giant. Facebook said its planning to further integrate Giphy into the Instagram app “so that people can find just the right way to express themselves.” Giphy will continue to operate its library, Facebook said.

Before the announcement, New York-based Giphy had raised about $150 million in venture funding.

Founded in 2013 by Alex Chung, Jace Cooke, Giphy is a library of GIFs that can integrate with other apps. Companies like Slack and Twitter have built Giphy into their apps. Apple also uses some Giphy images for its GIF feature in iMessage. It’s unclear if Facebook will end those relationships to keep Giphy only on Facebook’s apps. Instagram said in a tweet that third parties will still be allowed to use Giphy images.

In a tweet, Instagram said third parties will still be allowed to use Giphy images. “Welcome to the family! For those wondering, GIPHY will continue to operate its library and relationships with content and API partners, so if you use GIPHY on other platforms, nothing will change,” the tweet reads.

Welcome to the family! For those wondering, GIPHY will continue to operate its library and relationships with content and API partners, so if you use GIPHY on other platforms, nothing will change. https://t.co/DR1e3wCrn9 pic.twitter.com/U6XWAohtzU

— Instagram Comms (@InstagramComms) May 15, 2020