Facebook recently buys Giphy with a deal worth of US$400 million reportedly. Upon the acquisition, Giphy will still be able to maintain its own brand, but it will be part of Instagram team.
The reliance of Facebook, and its subsidiary platforms, on Giphy has been on-going for years. The talks pertaining to the purchase have started prior to the coronavirus pandemic though back then it was more like a partnership.
By putting Giphy under Instagram team, the tech leviathan plans to enable easier GIF-sharing on Instagram stories and direct messages. However, the new ownership will not make other platforms unable to use Giphy’s services, at least for now.
“People will still be able to upload GIFs. Developers and API partners will continue to have the same access to Giphy’s APIs. And Giphy’s creative community will still be able to create great content,” Vishal Shah, Instagram’s VP of product, stated.
Under Facebook, Giphy Acquisition Invites Antitrust
Though Facebook said that nothing will change upon the acquisition, many parties might develop antitrust over the use of the GIF-sharing and making platform. This is so considering that Facebook has a record of having issues over security and privacy.
Reportedly, more than 700 million people see contents from Giphy on a daily basis. The generated number comes from various sources, including Facebook’s competitors themselves, such as Twitter and Apple’s iMessage.
Giphy has always been able to look at users’ search terms, but not their data as it does not use tracking pixels and cookies. However, under the new ownership, Facebook has all the rights to conduct ‘slight changes’ on the platform’s policies.
Apart from security and privacy concerns, competitors would most likely want to rely on their own competitors’ services. Considering the possibility, GIF-sharing and making services on several platforms might potentially change.
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