Facebook to acquire Giphy in a deal reportedly worth $400 million

Facebook  will acquire Giphy, the web-based animated gif search engine and platform provider, Facebook confirmed today, in a deal worth around $400 million, according to a report by Axios. Facebook said it isn’t disclosing terms of the deal. Giphy has grown to be a central source for shareable, high-engagement content, and its animated response gifs are available across Facebook’s platforms, as well as through other social apps and services on the web.

Most notably, Giphy  provides built-in search and sticker functions for Facebook’s Instagram, and it will continue to operate in that capacity, becoming a part of the Instagram team. Giphy will also be available to Facebook’s other apps through existing and additional integrations. People will still be able to upload their own GIFs, and Facebook intends to continue to operate Giphy under its own branding and offer integration to outside developers.

Facebook says it will invest in additional tech development for Giphy, as well as build out new relationships for it on both the content side and the endpoint developer side. The company says that fully 50% of traffic that Giphy receives already comes from Facebook’s apps, including Instagram, Messenger, the FB app itself and WhatsApp .

Giphy was founded in 2013, and was originally simply a search engine for gifs. The website’s first major product expansion was an extension that allowed sharing via Facebook, introduced later in its founding year, and it quickly added Twitter  as a second integration. According to the most recent data from Crunchbase, Giphy had raised $150.9 million across five rounds, backed by funders including DFJ Growth, Lightspeed, Betaworks, GV, Lerer Hippeau and more