The Tweet came, from the official Giphy account, though the acquisition news was first made known by Axios. In a breakdown by Mashable, the talks between Facebook and Giphy started as that of a partnership before the CoronaVirus pandemic. However, things took a different turn and it soon became that of acquisition.
— GIPHY (@GIPHY) May 15, 2020
Now, Facebook has successfully completed the move to add Giphy to its catalogue of bought companies. It’s no longer a surprise, as Facebook has become the giant that keeps swallowing other smaller companies. The acquisition costs Facebook $400,000, which makes it the cheapest tech company Facebook would buy.
With this acquisition, Giphy would be joining the Instagram team, to further integrate GiFs into stories and DMs. Now, the first question that popped in the mind of several tech-savvy is that, would this result in a loss of the GIF API from GIphy, by other sites that make use of it. Well, no. Not Yet. Social Media sites like Reddit, Twitter, Pinterest, Slack, etc. make use of the API by Giphy.
The answer is “no”, because according to Instagram’s VP of Product, “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”
On the other hand, the answer is “Not Yet” because we are dealing with Mark Zuckerburg here. Mark seems intolerant of not dominating the market. Due to the fact that other competing sites like Twitter are also using the product of Giphy, one cannot be too certain if this doesn’t stop in the near future.
Only time will tell if those sites are in trouble.