The GIF platform owned by Meta is trying to convince the competition authority of its own worthlessness.
In 2020, Meta Platforms, then still known as Facebook, Inc., announced the acquisition of the most popular GIF provider, Giphy, which has since been organically integrated into the company’s services, from Facebook to Messenger to Instagram and WhatsApp.
The British Competition and Markets Authority (CMA) began to investigate the merger and later found that the inclusion of the GIF platform with 700 million users could be market distorting, so it finally ordered Meta to sell Giphy. The corporate giant appealed against the decision, and the Competition Court of Appeal annulled the CMA’s original report in July, so the tug-of-war between the parties continues.
Meta and Giphy are now trying with renewed vigor to prove that there is nothing to see about the $400 million deal, for which the GIF platform used an unusual argument: the service provider essentially wants to convince the authorities that it is not considered an important player, since it already only old people use it.
“There are signs of a general decline in GIF usage. Market commentary and user reviews of GIFs on social media indicate that GIFs are falling out of fashion as a content format, with younger users in particular calling it ‘boomer’ and ‘gassy’ them.”
– stabs its users in the back Giphy’s official reasoning. The submission does not detail why Meta paid nearly HUF 163 billion for such an outdated service, although the CMA may also ask this question when dissecting the logic behind the argument.
All the more so, as the document reveals that in addition to the Zuckerbergs, other giants were also interested in the platform, including Apple and Amazon, but nothing came of these negotiations in the end.
Source: PC World Online Hírek by pcworld.hu.
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