Facebook confirmed that it will buy GIPHY, a platform provider of search engines for animated GIFs on the web, for about $400 million on May 15, according to reports by Axios. GIPHY has grown to be a central source for shareable, high-engagement content, and its animated response gifs are available across Facebook's platform, as well as through other social apps and services on the web.
In particular, GIPHY provides Instagram with search and sticker functionality, and we expect to continue to maintain that functionality and eventually become part of the Instagram team and GIPHY will be available for other Facebook apps, with Instagram already done and future integrations. People will continue to be able to upload their own GIFs, Facebook will run GIPHY under its own brand and will make GIPHY available to outside developers.
According to Facebook, the company will make an additional investment in GIPHY technology development, and will establish a new relationship at both the content and endpoint developers’ levels. Also, 50% of the traffic received by GIPHY is from Facebook apps such as Instagram, Messenger, the FB app itself and WhatsApp.
Founded in 2013, GIPHY was initially just a GIF search engine. The first significant extension of the website was the ability to share via Facebook, which was introduced later in the company's founding year. Shortly thereafter, sharing became possible on Twitter as a second integration. According to Crunchbase reports, Giphy has raised $150.9 million in five rounds backed by funders includes DFJ Growth, Lightspeed, Betaworks, GV, Lerer Hippeau and more.