![]() ![]() The watchdog said this effectively "removed Giphy as a potential challenger in the UK display advertising market." Giphy had plans to launch its own ads but these were quashed by Meta after the takeover was completed in 2020, according to the regulator. The CMA also cited the prospect of Giphy relinquishing its own ambitions in digital advertising in its decision to block the deal. Such services would have allowed brands like Dunkin' Donuts and Pepsi to promote their brands through GIFs, it added. "Before the merger, Giphy was offering innovative advertising services in the US and was considering expanding to other countries, including the UK," the regulator said. Meta controls nearly half of the U.K.'s £7 billion ($7.9 billion) display advertising market. Giphy has seen a decline in the number of GIF uploads in the past two years, it added.īut the CMA took issues with the takeover - specifically with impact it would have on the U.K. GIFs "have fallen out of fashion as a content form, with younger users in particular describing gifs as 'for boomers' and 'cringe,'" the company said in the filing. ![]() It had spent far greater sums on earlier deals, including the $1 billion acquisition of photo sharing app Instagram and the $19 billion buyout of encrypted messaging platform WhatsApp. Meta's $315 million acquisition of Giphy was hardly one of the social media giant's biggest. After a three-month review, a CMA panel ruled the deal would enable Meta to further increase its market power. However, in June, a court largely ruled against the company's appeal, kicking the final decision over the fate of the deal back to the CMA. In November, the CMA ordered Meta to divest Giphy after finding the combination of the two companies raised competition concerns. We will continue to evaluate opportunities - including through acquisition - to bring innovation and choice to more people in the UK and around the world." "We are grateful to the GIPHY team during this uncertain time for their business, and wish them every success. "We will work closely with the CMA on divesting GIPHY," the Meta spokesperson told CNBC. In a statement, a Meta spokesperson said the company was "disappointed by the CMA's decision but accept today's ruling as the final word on the matter." ![]()
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