Adds a mobile content platform with 1.7
billion daily users and global partners including Instagram,
Facebook, WhatsApp, Microsoft, TikTok, Samsung, Twitter, Slack and
Discord
NEW
YORK, May 23, 2023 /PRNewswire/ -- Shutterstock,
Inc. (NYSE: SSTK), a premier partner for transformative brands,
digital media and marketing companies, today announced that it
entered into a definitive agreement to acquire GIPHY, Inc. from
Meta Platforms, Inc. GIPHY is the world's largest collection of
GIFs and stickers that supplies casual conversational content.
GIPHY's vast library of GIFs and stickers draws more than 1.3
billion search queries on a daily basis and powers more than 15
billion daily media impressions. These impressions are distributed
via GIPHY's more than 14,000 API/SDK integrations and its
owned-and-operated website and mobile app. GIPHY's content serves
as a critical ingredient in text- and message-based conversations
on platforms such as Meta, other social media platforms such as
TikTok, Twitter and Snapchat and team collaboration platforms such
as Slack and Microsoft Teams, in addition to integrations with most
mobile devices. GIPHY's content library is fueled by both
individual artists who contribute original content and top verified
media partners such as NBC, Disney, Netflix, NFL, MLB, and NBA,
ensuring a steady supply of fresh culturally relevant content which
can be inserted into everyday conversations and shared via social
media.
"This is an exciting next step in Shutterstock's journey as an
end-to-end creative platform," remarked Shutterstock CEO
Paul Hennessy. "Shutterstock is in
the business of helping people and brands tell their stories.
Through the GIPHY acquisition, we are extending our audience touch
points beyond primarily professional marketing and advertising use
cases and expanding into casual conversations. GIPHY enables
everyday users to express themselves in memorable ways with GIF and
sticker content while also enabling brands to be a part of these
casual conversations. We plan to leverage Shutterstock's unique
capabilities in content and metadata monetization, generative AI,
studio production and creative automation to enable the
commercialization of our GIF library as we roll this offering out
to customers."
Strategic Highlights:
- Augments Shutterstock's generative AI and metadata strategy,
including mobile generative AI at global scale
- Taps into a large and growing TAM in native advertising for
brands seeking touch points with customers in-moment via mobile
phones and communications tools
- Expands Shutterstock's content library to include GIFs and
stickers used in more casual conversations - GIFs have over 75%
positive sentiment among consumers
- Combines Shutterstock Studios and GIPHY Studios to enable
world-class custom content solutions for brands and
advertisers
- Enables access to a massive user base consisting of 1.7 billion
daily users generating 1.3 billion search queries
- Extends Shutterstock's API ecosystem to include GIPHY's more
than 14,000 API/SDK partners
Financial Highlights:
- Consideration for the transaction consists of $53 million of net cash paid at closing,
inclusive of working capital
- Cash consideration funded through cash-on-hand and existing
revolving credit facility
- In connection with this transaction, GIPHY's current owner,
Meta Platforms, Inc., is entering into an API agreement to ensure
continued access to GIPHY's content across Meta's platform
- Shutterstock is maintaining its 2023 revenue and adjusted
EBITDA margin guidance
- GIPHY is expected to add minimal revenue in 2023 with focused
monetization efforts taking place over the course of 2024
- The transaction is targeted to close in June 2023, subject to customary closing
conditions
Additional Information:
Investors can find a link to the presentation material on the GIPHY
transaction at https://investor.shutterstock.com.
Advisor:
CapM Advisors acted as financial advisor to Shutterstock in
connection with the transaction.
About Shutterstock, Inc.
Shutterstock, Inc. (NYSE: SSTK) is a premier partner for
transformative brands, digital media and marketing companies,
empowering the world to create with confidence. Fueled by millions
of creators around the world and a fearless approach to product
innovation, Shutterstock is the leading global platform for
licensing from the most extensive and diverse collection of
high-quality 3D models, videos, music, photographs, vectors and
illustrations. From the world's largest content marketplace, to
breaking news and A-list entertainment editorial access, to
all-in-one content editing platform and studio production
service—all using the latest in innovative technology—Shutterstock
offers the most comprehensive selection of resources to bring
storytelling to life.
Learn more at www.shutterstock.com and follow us on
LinkedIn, Instagram, Twitter, Facebook and YouTube.
Forward-Looking
Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements other than statements of historical fact are
forward-looking. Examples of forward-looking statements include,
but are not limited to, statements regarding guidance, industry
prospects, future business, future results of operations or
financial condition, new or planned features, products or services,
management strategies and our competitive position. You can
identify forward-looking statements by words such as "may," "will,"
"would," "should," "could," "expect," "aim," "anticipate,"
"believe," "estimate," "intend," "plan," "predict," "project,"
"seek," "potential," "opportunities" and other similar expressions
and the negatives of such expressions. However, not all
forward-looking statements contain these words. Forward-looking
statements are subject to known and unknown risks, uncertainties
and other factors that could cause our actual results to differ
materially from those expressed or implied by the forward-looking
statements contained herein. Such risks and uncertainties include,
among others, those discussed under the caption "Risk Factors" in
our most recent Annual Report on Form 10-K, as well as in other
documents that the Company may file from time to time with the
Securities and Exchange Commission. Factors related to the
transactions discussed in this document that could cause actual
results to differ materially from those contemplated by the
forward-looking statements include: uncertainties as to the timing
to consummate the potential transaction; the risk that a condition
to closing the potential transaction may not be satisfied;
potential litigation relating to the potential transaction that
could be instituted; the effects of disruption to our or the
target's respective businesses; the impact of transaction costs;
our ability to achieve the benefits from the proposed transaction,
including monetization; our ability to effectively integrate the
acquired operations into our operations; our ability to retain and
hire key target personnel; and the effects of any unknown
liabilities. As a result of such risks, uncertainties and factors,
Shutterstock's actual results may differ materially from any future
results, performance or achievements discussed in or implied by the
forward-looking statements contained herein. The forward-looking
statements contained in this press release are made only as of this
date and Shutterstock assumes no obligation to update the
information included in this press release or revise any
forward-looking statements, whether as a result of new information,
future developments or otherwise, except as required by law.
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SOURCE Shutterstock, Inc.