Meta, Avoids UK Restrictions with 'Evasive' Sale... Losses Around 340 Billion KRW

Meta Platforms, the parent company of Facebook, has sold the photo and image search platform 'Giphy' due to a halt imposed by the UK antitrust authorities. It is estimated that Meta incurred a loss of over 340 billion KRW from this sale.

[Image source=Reuters Yonhap News]

According to economic media CNBC and others, Shutterstock, an online stock image marketplace, announced on the 23rd (local time) that it will acquire Giphy from Meta for $53 million (approximately 70 billion KRW). This amount is about $262 million (approximately 345.8 billion KRW) lower compared to the $315 million (approximately 415.8 billion KRW) Meta reportedly paid to acquire Giphy in 2020.

Meta proceeded with the sale of Giphy at a loss following a divestment order from the UK antitrust authority, the Competition and Markets Authority (CMA). Initially, Meta planned to integrate Giphy with its photo and video social media platform Instagram after the acquisition. However, the CMA issued the divestment order, citing concerns that Meta’s acquisition of Giphy would have anti-competitive effects on the social media and advertising markets. Meta appealed to the court last year, but the court allowed the CMA to make the final decision.

The transaction will be conducted entirely in cash. It is expected that all deals will be completed by June. Shutterstock expects that by acquiring Giphy, it can add GIF images, commonly known as 'moving pictures,' to its digital content and expand user access rights.

This content was produced with the assistance of AI translation services.