Although the animated reaction images appear (and are insignificant) in the grand scheme of things, the agreement should attract a great deal of attention from federal supervisory authorities. The Justice Department, Congress and the Federal Trade Commission are already looking at the smallest and weakest acquisitions by big tech firms like Facebook over the past decade, and are studying them using anti-competitive behavior patterns. Giphy is far from the only platform for gif search and internet hosting, but it is one of the largest. Several other platforms, including Twitter, use its API for GIF support. Facebook and Giphy both promised that access would continue. In his announcement, Giphy specifically stated: “For our API/SDK partners and developers: GIPHY GIF, stickers, emoticons, etc., there is nowhere to go. We will continue to make GIPHY open to the wider ecosystem. According to Facebook, about half of Giphy`s current traffic already comes from Facebook products, especially Instagram. This is perhaps not surprising, given that Facebook`s three major apps, WhatsApp, Instagram and Facebook, have literally billions of daily users. Facebook makes Giphy part of the Instagram team, the company said today. Axios, which was the first to report the transaction, said the deal was valued at about $400 million.
Seven years ago, Facebook claimed not to support the new favorite communication tool of the 21st century, the animated GIF. How times have changed: Today, Facebook`s latest acquisition is one of the most popular GIF hosting sites on the Internet. Giphy was the first service to run animated images on Facebook. He created a workaround in 2013, when Facebook was now a ridiculous official attitude: “Facebook doesn`t support animated GIFs.”