- Shutterstock (SSTK) rose in early trading Tuesday morning after the company announced it was buying motion-image platform Giphy from Meta Platforms (META) for $53 million.
- Meta's $400 million purchase of Giphy in 2020 was challenged by UK regulators over concerns the deal could limit access to GIFs by other social media sites.
- Shutterstock shares rose nearly 4% on the news Tuesday morning before falling back later in the day.
Shutterstock (SSTK) shares rose in early trading Tuesday morning after the stock image provider announced that it was buying motion image platform Giphy from Meta Platforms (META) for $53 million.
Meta's purchase of Giphy for a reported $400m in 2020 has been challenged by the UK's Competition and Markets Authority over concerns the deal will limit access to GIFs by other social media sites. Last year, regulators ordered Meta to sell it.
Shutterstock CEO Paul Hennessy called the deal “an exciting next step” for the company. He explained that with the acquisition, “we are expanding our audience touchpoints beyond the primarily professional marketing and advertising use cases and expanding into casual conversations” .
1.7 billion 39;users
Shutterstock noted that the addition of Giphy gives it access to 1.7 billion daily users, and Giphy's library of GIFs and stickers attracts more than 1.3 billion search queries each day.
The company indicated that in As part of the agreement, Meta will ensure continued access to Giphy content on Meta platforms. He said the transaction is expected to close next month.
Shutterstock shares have nearly rose 4% on the news Tuesday morning before pulling back later in the day. Meta shares rose 1% earlier in the day but fell later.