Shutterstock, Inc., a premier partner for transformative brands, digital media and marketing companies, today announced that it entered into a definitive agreement to acquire GIPHY, Inc. from Meta Platforms, Inc. GIPHY is the world's largest collection of GIFs and stickers that supplies casual conversational content.

GIPHY's vast library of GIFs and stickers draws more than 1.3 billion search queries on a daily basis and powers more than 15 billion daily media impressions. These impressions are distributed via GIPHY's more than 14,000 API/SDK integrations and its owned-and-operated website and mobile app. GIPHY's content serves as a critical ingredient in text- and message-based conversations on platforms such as Meta, other social media platforms such as TikTok, Twitter and Snapchat and team collaboration platforms such as Slack and Microsoft Teams, in addition to integrations with most mobile devices. GIPHY's content library is fueled by both individual artists who contribute original content and top verified media partners such as NBC, Disney, Netflix, NFL, MLB, and NBA, ensuring a steady supply of fresh culturally relevant content which can be inserted into everyday conversations and shared via social media."This is an exciting next step in Shutterstock's journey as an end-to-end creative platform," remarked Shutterstock CEO Paul Hennessy. "Shutterstock is in the business of helping people and brands tell their stories. Through the GIPHY acquisition, we are extending our audience touch points beyond primarily professional marketing and advertising use cases and expanding into casual conversations. GIPHY enables everyday users to express themselves in memorable ways with GIF and sticker content while also enabling brands to be a part of these casual conversations. We plan to leverage Shutterstock's unique capabilities in content and metadata monetization, generative AI, studio production and creative automation to enable the commercialization of our GIF library as we roll this offering out to customers."

Strategic Highlights:

• Augments Shutterstock's generative AI and metadata strategy, including mobile generative AI at global scale
• Taps into a large and growing TAM in native advertising for brands seeking touch points with customers in-moment via mobile phones and communications tools
• Expands Shutterstock's content library to include GIFs and stickers used in more casual conversations - GIFs have over 75% positive sentiment among consumers
• Combines Shutterstock Studios and GIPHY Studios to enable world-class custom content solutions for brands and advertisers
• Enables access to a massive user base consisting of 1.7 billion daily users generating 1.3 billion search queries
• Extends Shutterstock's API ecosystem to include GIPHY's more than 14,000 API/SDK partners

Financial Highlights:

• Consideration for the transaction consists of $53 million of net cash paid at closing, inclusive of working capital
• Cash consideration funded through cash-on-hand and existing revolving credit facility
• In connection with this transaction, GIPHY's current owner, Meta Platforms, Inc., is entering into an API agreement to ensure continued access to GIPHY's content across Meta's platform
• Shutterstock is maintaining its 2023 revenue and adjusted EBITDA margin guidance
• GIPHY is expected to add minimal revenue in 2023 with focused monetization efforts taking place over the course of 2024
• The transaction is targeted to close in June 2023, subject to customary closing conditions