Stock-photo website Shutterstock has agreed to buy the short video platform for $53m (£42m) in cash, despite Meta paying $400m for it in 2020.
The news comes after the UK's Competition and Markets Authority (CMA) ordered Facebook's parent company to sell Giphy, over fears that it could deny or limit competitors such as Snapchat, TikTok and Twitter access to the target's content.
Meta tried to appeal the regulator's decision, describing the enforcement order as “excessively broad” and applied “indiscriminately” to its global business. It also argued that gifs "have fallen out of fashion as a content form, with younger users in particular describing gifs as 'for boomers' and 'cringe'".
Nonetheless, the British court dismissed the appeal and criticised the company for failing to engage properly with the CMA. Last October, Meta agreed to accept the CMA's order and began looking for buyers for the platform after the...