Giphy
| Company type | Private (formerly) |
|---|---|
| Industry | Online media, Search engine |
| Founded | February 2013 |
| Founder | Alex Chung, Jace Cooke |
| Headquarters | United States |
Key people | Alex Chung (CEO) |
| Products | GIF search engine, GIF creation tools (GIPHY Cam), API services |
| Parent | Shutterstock (since June 2023) |
| Website | giphy |
Giphy (, ), presented as GIPHY, is a U.S.-based online platform and search tool that allows users to find and share animated GIF images.
Origins and initial development
Founded in February 2013 by Alex Chung and Jace Cooke, Giphy originated from a breakfast conversation about the rising popularity of visual communication.[1] Initially, it functioned exclusively as a search engine dedicated to GIFs. Within its first week, the site drew nearly one million visitors before settling to around 300,000 users.[2]
The company later introduced "conversational search," which embedded GIF search functionality directly within messaging applications, thereby increasing interactive engagement through integrated content.[3]
Expansion
By August 2013, Giphy evolved beyond just a search engine by enabling users to post, embed, and distribute GIFs on Facebook. Shortly thereafter, it was acknowledged as one of the Top 100 Websites of 2013 by PC Magazine. Three months later, Giphy incorporated integration with Twitter, permitting users to share GIFs via URLs.
In May 2014, the company secured $2.4 million in Series A financing from investors such as Quire, CAA Ventures, RRE Ventures, Lerer Hippeau Ventures, and Betaworks.
March 2015 marked Giphy’s acquisition of Nutmeg, a GIF messaging application, representing its initial foray into mobile platforms. This coincided with the launch of Facebook Messenger’s platform, where Giphy was among the first app collaborators. Subsequently, in August 2015, Giphy released its second mobile application, GIPHY Cam, which allowed users to create customized GIFs for sharing on social media.
In February 2016, Giphy raised $55 million at a valuation of $300 million. By October that year, the platform reported 100 million daily active users who consumed over one billion GIFs each day and collectively viewed more than two million hours of GIF content daily.
By July 2017, daily active users across Giphy’s API and website reached 200 million, with about 250 million monthly active visitors on the site alone. In February 2019, CEO Chung announced intentions to develop an advertising approach different from Google’s search ads by embedding promotions within private messaging environments—capitalizing on Giphy’s widespread integration with major messaging services.
Proposed acquisition by Meta Platforms
In May 2020, Giphy consented to be acquired by Facebook Inc. (currently Meta Platforms) for roughly $400 million. Approximately half of Giphy’s traffic originated from Facebook services. The plan involved integrating Giphy with Facebook’s subsidiary Instagram, although no immediate modifications to service were anticipated. Following the acquisition, Facebook terminated Giphy’s display advertising program.
The deal attracted regulatory attention amid Facebook’s recent privacy issues. The UK's Competition and Markets Authority (CMA) initiated an investigation due to potential anti-competitive implications. In June 2020, the CMA issued an enforcement order preventing full integration of Giphy into Facebook until a final decision was reached.
By August 2021, concerns were raised by the CMA that Facebook might limit competitors’ access to Giphy’s services or require additional user data while also noting Facebook’s dominant position in the advertising market. On November 30, 2021, the CMA mandated Meta to divest Giphy. However, on July 18, 2022, the Competition Appeal Tribunal instructed the CMA to reassess its ruling on procedural grounds but upheld most substantive findings.
On October 18, 2022, the CMA reaffirmed its directive for Meta to sell Giphy due to Meta’s control over half of the UK advertising sector. While Meta agreed to proceed with a sale, it contested the decision.
In May 2023, Shutterstock announced plans to purchase Giphy from Meta for $53 million in cash; this acquisition was finalized on June 23, 2023.
Partnerships
Giphy works closely with various brands to provide GIFs that serve as marketing tools across multiple social media platforms. Additionally, the site highlights artist profiles, ensuring that creators receive proper recognition for their GIFs.
In September 2014, Giphy joined forces with Line to initiate the first-ever sticker design contest, which was supported by a range of digital collaborators such as Tumblr, Fox ADHD, Frederator, Cut & Paste, New Museum, Eyebeam, Rhizome, The Webby Awards, Pratt, The Huffington Post, and Dribbble.
By August 2015, Giphy partnered with Universal Studios to create and distribute six promotional GIFs for the movie Straight Outta Compton.
To date, Giphy has established collaborations with more than 200 companies to host branded content channels. Prominent collaborators include Disney, Calvin Klein, GE, and Pepsi.