Another new day and another new deal by Social media giant Facebook. It is acquiring web-based animated gif search engine platform provider Giphy. The deal is worth whopping around $400 Million, media reports say. Both the Giphy and Facebook does not confirm the amount of agreement officially. This Giphy is going to be integrated with Instagram. Giphy shared the news with a tweet that they are so excited to be the part of Facebook by joining Instagram. Facebook deals with Giphy to acquire it.
About Facebook —
Almost all of us know about this tech giant. We all are traped by social Media Platforms like WhatsApp, Facebook, and Instagram. These companies have held the world inside a smartphone. Facebook is a company that builds technology to connect different types of people all around the world. The company was founded by Mark Zuckerberg and his fellow members from Harvard University. From starting our day with a good morning message to using Instagram late night, most of use daily use these platforms.
What GIPHY is —
Giphy is an American online database and search engine company. The company has been founded in the year 2013. It allows users to search and share looping videos with no sound, which resembles GIFs. This New York-based company has an estimated market value of around $600 million. It has raised its funding of about $150 million in 2013. Giphy features what its founder called “conversational search.” Where content is brought to the users, the Idea of GIF came while the founder was having breakfast, musing on to have visual communications. The site at a time of launch become so famous that it has more than 1 million users in the first week. Simply Giphy is a platform with hundreds of millions of users, which shares billions of videos and GIFs daily, and it generates its revenue by Branding. The founder says that the company will continue its Branding even after Facebook acquires it.
Why this deal?
According to Facebook, about half of the companies traffic comes from Facebook. According to most of there, company people already know about this company and love using Giphy. About 50 % of traffic is from Instagram alone. Facebook deals with Giphy so that, the people will easily find the required GIFs and stories in both the stories and direct messages. So, the transaction is going to be profitable for the companies due to the traffic and audience base of both the tech giants. The deal will make the user experience more fun and engaging. The stickers and Gif of these companies are so much attractive and user friendly.
According to a report, the active user of Facebook, Instagram, and WhatsApp have been increased during Lockdown. According to a statement, the active user of Facebook has been increased to about 1.72billion average by the end of March, which is about 11%. So I think that this deal was all about due to the increase in the use of GIFs and short videos, so both the company decided to merge and enhance the experience of the user. Do tell me comments about the blog. Also, share this information with your friends.