Meta has sold its animated-gif search engine, Giphy, to Shutterstock for $53 million, a significant drop from the $400 million it paid for the platform just three years ago.

The sale comes after the UK’s competition watchdog ordered Meta to divest Giphy due to competition concerns.

Giphy is a leading provider of animated gifs to popular social networks like Snapchat, TikTok, and Twitter.

As part of the deal, Meta’s platforms, including Facebook, Instagram, and WhatsApp, will still have access to Giphy’s content.

Giphy boasts impressive numbers, with over 1.3 billion search queries received daily and its content viewed a total of 15 billion times.

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The Competition and Markets Authority (CMA) initially mandated the sale in November 2021, citing potential harm to competition in the social media and advertising sectors.

Although Meta had initially expressed intentions to make Giphy available to other social networks, the CMA’s investigation revealed concerns about market competition.

This marked the first time the regulator had blocked a deal involving a major Silicon Valley company.

Despite Meta’s appeal to prevent the sale, they ultimately agreed to comply with the CMA’s order in October.

Shutterstock expressed excitement about acquiring Giphy, highlighting its ability to allow users to express themselves with gif and sticker content while providing brands an opportunity to engage in casual conversations.

Giphy’s extensive library is fueled by contributions from individual artists and partnerships with companies like Disney and Netflix, ensuring a constant supply of current and shareable content for everyday conversations and social media interactions.