In the News
Risks of External Growth - Meta sells Giphy to Shutterstock
The risks of external growth. Another failed takeover to add to the list. Bought for $400m in 2020 but sold for $53m in 2023 and all due to the application of competition regulation too.
It seems as though the UK competition authorities are clamping down on consolidation in tech markets, with the Competition and Markets Authority forcing Meta to sell Giphy to Shutterstock and, in the process incur at sizeable loss.
This follows the decision to block the Microsoft - Activision deal, and might worry tech firms that the future direction of travel seems to be opposed to future mergers in the sector.
Please read: Meta loses millions as made to sell Giphy to Shutterstock (BBC news)