How Facebook’s past acquisitions could haunt its purchase of Giphy

Illustration by Alex Castro / The Verge

On Friday, Facebook made its fifth-largest known acquisition ever. The company bought Giphy, a database and search engine for the short looping videos known as GIFs, for $400 million. Today let’s talk about some of the reasons, stated and unstated, that Facebook bought Giphy, and then consider what might come next.

The stated reason for acquiring Giphy, as expressed in this blog post from Instagram’s head of product announcing the deal, is twofold. One, Facebook can now build tighter integrations between the products to enhance stickers, stories, and other products. And two, it can make further investments in Giphy’s technology and content library to benefit all the companies that rely on Giphy for GIF supply. Here’s Vishal Shah:

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