Facebook to Acquire GIF Platform Giphy

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The New York startup will become a part of the Instagram team.

Facebook has acquired GIF platform Giphy and plans to integrate it with photo and video sharing app Instagram, the companies announced Friday morning. 

Axios, which first reported on the sale, pegs the deal valuation at around $400 million. 

Facebook has used Giphy's API for several years on Instagram, the Facebook app and WhatsApp. The social media giant now plans to further integrate its library of animated pictures into the Instagram experience. 

"GIFs and stickers give people meaningful and creative ways to express themselves," Facebook vp product Vishal Shah wrote in a blog post announcing the deal. "We see the positivity in how people use Giphy in our products today, and we know that bringing the Giphy team's creativity and talent together with ours will only accelerate how people use visual communication to connect with each other."

Founded in 2013, New York-based Giphy operates a large library of GIFs. The company had raised about $150 million in funding from backers including Betaworks, Lerer Hippeau and IVP. 

Facebook says that Giphy will continue to operate its library and will maintain its relationships with content and API partners.