Facebook to buy Giphy for $400 million

https://www.axios.com/scoop-facebook-to-buy-giphy-for-400-million-4a75a359-833b-484d-b15b-87e94d3de017.html

Facebook has agreed to buy Giphy, the popular platform of sharable animated images, Axios has learned from multiple sources. The total deal value is around $400 million.

Background: A source close to the situation says that the two companies first began talking prior to the pandemic, although that was more about a partnership than an acquisition.

  • Giphy is expected to retain its own branding, with its primary integration to come via Facebook's Instagram platform.
  • New York-based Giphy had raised around $150 million in VC funding since its 2013 inception, from firms like Betaworks (which incubated the company), Lerer Hippeau, IVP, DFJ Growth, GGV Capital, and Lightspeed Venture Partners. Its most recent private valuation was around $600 million.

The bottom line: Giphy is a massive video library, with hundreds of millions of daily users that share billions of GIFs, that generates revenue via branded content. Adding Facebook's ad sales and marketing firepower could be what transforms it from a popular service into a highly profitable one.

Interesting. Although I wonder if it will eliminate some of the more risqué gifs that exist on giphy. 

The monopoly monster keeps growing.

1 Like
100kgkilla -

The monopoly monster keeps growing.

yep

this is not good

its the "free market" though that means we automatically have to accept it for some reason

*removes giphy from slack*

1 Like
100kgkilla - 

The monopoly monster keeps growing.

They're not a monopoly, at least not in the traditional sense of the word.

Traditional monopolies "control supply of a good or service, and where the entry of new producers is prevented or highly restricted."

In this case, the supply of a good or service (social networking, webpage indexing and searching) are not controlled by Facebook and Google because they aren't finite resources. Anyone can index the web and anyone can build a social network and Google/Facebook aren't going to crush you with lawsuits or some other nefarious tactic to maintain their position (AFAIK).

Entry of new producers of these services is not prevented or highly restricted. New social networks and search engines pop up all the time.

What Facebook and Google have is massive, large scale user loyalty. Despite alternatives existing (Bing, Mastadon, DuckDuckGo, Myspace, etc.), users are voluntarily choosing to use Google and Facebook. This is not a monopoly.

I think we need a new term for this situation.

^cyberopoly?

Two dogshit companies together at last!

Altofsky - 

Two dogshit companies together at last!

don't you have a facebook for bushkill blades? this isn't a ding on you, just a statement that even some who is strongly anti facebook still feels like they have to use facebook

SpunQ -

Meme cencorship, wonderful.

Thats why I save gifs and memes whenever I find them funny and want to reuse them

I work as a contractor at a FB DC. It’s an amazing company to work for and easily the best job I have ever had. I understand a lot of the flack they get,why, and have my own issues. But they take good care of their teams. Remember outside of FB, they also own Instagram, WhatsApp, and host Occulus Rift. The chances of someone matching them is not very likely. 

guitarmanzan - 

I work as a contractor at a FB DC. It’s an amazing company to work for and easily the best job I have ever had. I understand a lot of the flack they get,why, and have my own issues. But they take good care of their teams. Remember outside of FB, they also own Instagram, WhatsApp, and host Occulus Rift. The chances of someone matching them is not very likely. 

What kind of work do you do? Not asking for specifics, just generally.

saglv -
guitarmanzan - 

I work as a contractor at a FB DC. It’s an amazing company to work for and easily the best job I have ever had. I understand a lot of the flack they get,why, and have my own issues. But they take good care of their teams. Remember outside of FB, they also own Instagram, WhatsApp, and host Occulus Rift. The chances of someone matching them is not very likely. 

What kind of work do you do? Not asking for specifics, just generally.

Network admin/break fix. Networks of this size are done w automation, so it’s not a typical network admin role. But deploying the devices, prepping for automation, keep them running, etc.  

chad_mcjangle - I think the acquisition that should have been blocked by the ftc was fb buying instagram. they bought the 1 meaningful direct competitor.

WhatsApp dwarfs Instagram and is 2nd behind fb for usage numbers. It’s massive most everywhere but in the US. Worldwide, it’s the most used messaging app anywhere. The amount of WhatsApp users a day is how many Instagram users has a month.

guitarmanzan - 
saglv -
guitarmanzan - 

I work as a contractor at a FB DC. It’s an amazing company to work for and easily the best job I have ever had. I understand a lot of the flack they get,why, and have my own issues. But they take good care of their teams. Remember outside of FB, they also own Instagram, WhatsApp, and host Occulus Rift. The chances of someone matching them is not very likely. 

What kind of work do you do? Not asking for specifics, just generally.

Network admin/break fix. Networks of this size are done w automation, so it’s not a typical network admin role. But deploying the devices, prepping for automation, keep them running, etc.  

Very interesting!  How long have you been doing that if you don't mind my asking?

chad_mcjangle -
saglv - 
100kgkilla - 

The monopoly monster keeps growing.

They're not a monopoly, at least not in the traditional sense of the word.

Traditional monopolies "control supply of a good or service, and where the entry of new producers is prevented or highly restricted."

In this case, the supply of a good or service (social networking, webpage indexing and searching) are not controlled by Facebook and Google because they aren't finite resources. Anyone can index the web and anyone can build a social network and Google/Facebook aren't going to crush you with lawsuits or some other nefarious tactic to maintain their position (AFAIK).

Entry of new producers of these services is not prevented or highly restricted. New social networks and search engines pop up all the time.

What Facebook and Google have is massive, large scale user loyalty. Despite alternatives existing (Bing, Mastadon, DuckDuckGo, Myspace, etc.), users are voluntarily choosing to use Google and Facebook. This is not a monopoly.

I think we need a new term for this situation.

facebook is different from google in that it has very strong network effects. what makes facebook valuable is that all of your friends are already using it. so it pretty much is impossible to compete with directly at this point until there is another big technology change.

Back in the day, everyone used Myspace. Facebook cught up and eventually took over though.

Was this just because the reach of social media was still expanding, could the same thing not happen again in the future?

Banjaxo - 
chad_mcjangle -
saglv - 
100kgkilla - 

The monopoly monster keeps growing.

They're not a monopoly, at least not in the traditional sense of the word.

Traditional monopolies "control supply of a good or service, and where the entry of new producers is prevented or highly restricted."

In this case, the supply of a good or service (social networking, webpage indexing and searching) are not controlled by Facebook and Google because they aren't finite resources. Anyone can index the web and anyone can build a social network and Google/Facebook aren't going to crush you with lawsuits or some other nefarious tactic to maintain their position (AFAIK).

Entry of new producers of these services is not prevented or highly restricted. New social networks and search engines pop up all the time.

What Facebook and Google have is massive, large scale user loyalty. Despite alternatives existing (Bing, Mastadon, DuckDuckGo, Myspace, etc.), users are voluntarily choosing to use Google and Facebook. This is not a monopoly.

I think we need a new term for this situation.

facebook is different from google in that it has very strong network effects. what makes facebook valuable is that all of your friends are already using it. so it pretty much is impossible to compete with directly at this point until there is another big technology change.

Back in the day, everyone used Myspace. Facebook cught up and eventually took over though.

Was this just because the reach of social media was still expanding, could the same thing not happen again in the future?

Of course. Nothing lasts forever.

Altofsky -

Two dogshit companies together at last!

I don't use neither services but yeah, two dogshit services have combined.