Facebook recently acquired the media company Giphy for a reported AU$621 million package.
Some media companies may end up having to remove their support for the media company following the acquisition. Facebook continues its roll out gobbling up companies that directly or even indirectly competes with their humongous platform.
In the past few years, Facebook acquired Instagram and WhatsApp. The company doesn’t care if the services of a company are essential or just add-on.
What it looks at is the viability of the company to contribute to Facebook’s massive data gathering platform. Now, it adds Giphy to its far and wide reach into people’s data and privacy.
Facebook acquires Giphy for AU$621 million
Over the weekend, Facebook announced via a blog post that it acquired its long time affiliate Giphy. Giphy is an app on its accord that provides creative GIFs. These GIFs are normally used as alternatives for emoji, when the latter are just not enough to convey a user’s emotion.
Giphy’s usage and success is heavily based on messaging apps that use the extension. According to Facebook, 50% of Giphy’s traffic comes from the Facebook so the acquisition just makes sense.
the debate has been settled:
it's pronounced "Great Image Frames" https://t.co/KycLWppVmW
— GIPHY (@GIPHY) May 11, 2020
The social media giant maintains that Giphy will be allowed to continue its normal operations and penetration in other apps. No major changes will be made in the app’s core competency, which is to provide creative media for users. In fact, Facebook commits to provide better support for Giphy for its continued growth.
Security and privacy issue surrounding Facebook
Facebook has been battling allegations regarding its deep access to users’ data. The U.S. Federal government has even launched a full investigation regarding its anti-trust acts. The government is also questioning the strategy of Facebook in acquiring its competitors in the market.
— GIPHY (@GIPHY) May 15, 2020
The acquisition of Giphy is a good example of Facebook’s wide reach. Not many companies are happy about the acquisition. Even though Facebook shares that Giphy will continue with its core competencies, other messaging app companies may want to completely remove Giphy from its extensions.
Having Giphy as an extension would mean that Facebook has a wider access to the user data of other messaging apps. Currently, Twitter has Giphy as an extension for its Tweets. Imessage, Tinder, Telegram, TikTok, and Snaphchat also have Giphy available for its users.
According to a Giphy officer, users do not have to worry about data privacy breach. The app only sees what the users search for in the app, and doesn’t go deeper than that. Nevertheless, despite Facebook’s promise to maintain the app’s operation, they can easily just change its coding for their own business purpose.
Image courtesy of @GIPHY/Twitter