Facebook (NASDAQ:FB) is the target of M&A news on Friday following its acquisition of Giphy.
Facebook revealed the acquisition on its website. It says that Giphy is joining its Instagram team. However, other companies under the FB banner will be making use of the GIF creation and sharing service.
Facebook points out that the acquisition of Giphy will help bolster its GIF library and allow for further integration into its platforms. The service is a favorite among FB users, with more than 50% of Giphy’s traffic coming from apps belonging to the company. Half of that traffic is from Instagram.
Vishal Shah, VP of Product at Facebook, said this about the Giphy acquisition.
“GIFs and stickers give people meaningful and creative ways to express themselves. We see the positivity in how people use GIPHY in our products today, and we know that bringing the GIPHY team’s creativity and talent together with ours will only accelerate how people use visual communication to connect with each other.”
Facebook doesn’t reveal the financial details of the M&A news, but other sources have thrown out a number. It looks like FB spent a total of $400 million to bring the GIF creation service into the fold. The tech company also points out that Giphy will continue to operate its library of GIFs after the acquisition.
FB stock was up 1.5% as of Friday afternoon but is down roughly the same since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.