Meta has failed in its bid to take over the animated GIF platform Giphy, as a long, drawn-out saga comes to an end.
Meta announced that it intended to take over Giphy back in 2019 in a move designed to integrate Giphy content into the company’s features. However, the Competition and Markets Authority (CMA) launched an investigation into the acquisition.
Meta, which worked to finalize the takeover in 2020, was instructed by the CMA to reverse the move and separate itself from Giphy. The authority cited concerns that the move would give Meta an unfair advantage in the digital ads space. It went on to fine Meta a sum of over £50.3 million for alleged breaches of the separation order and failure to disclose information about the merger.
The two parties have since been involved in a dispute as Meta attempted to push the deal through. However, it would now seem that the takeover is dead in the water, as the CMA issued a final decision and ordered Meta to step away from the $315 million acquisition.
Speaking to CNBC, a Meta spokesperson said: “We will work closely with the CMA on divesting Giphy. We are grateful to the Giphy team during this uncertain time for their business and wish them every success. We will continue to evaluate opportunities – including through acquisition – to bring innovation and choice to more people in the UK and around the world.”
