“They have gone out of fashion as a form of content, with younger users in particular describing GIFs as ‘for boomers‘ and ‘cringe’ “ writes to Giphy, in one of the documents of the legal dispute.
The company is a popular website that specializes in storing files of this type. In recent months, the GIF library has been trying unlock your sale for $400 millioninterrupted by CMA investigation against monopoly.
In the same court document, Giphy even shows reports and tweets joking about how old-fashioned, cheesy GIFs are and used by older people.
“I just learned how to use GIFs to react and teenagers are now informing me that GIFs are ‘cringe’,” reports one of the users in the aforementioned posts.
The site also reports that it saw GIF search and uploads drop between October 2020 and May 2022 — the extent of the drop, however, is not revealed in the document.
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In 2020, Giphy was bought by Meta, parent company of Facebook. The business began to be investigated by the CMA, which in the following year determined that the parent company sells Giphy.
The agency’s justification was that the agreement would allow the company to “increase its already significant market power”. That way, the CMA argued, the tech giant could deny or limit other platforms’ access to Giphy and drive traffic to sites managed by Facebook.
Months later, the compulsory sale was suspended by the UK Competition Appeals Court. With the lawsuit back, Giphy tries to convince the CMA to keep its sale to Meta.
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In addition to saying that GIFs have gone out of fashion, Giphy reports to the court that currently there may not be any more candidates who would go into the business to take the GIF library out of Meta.
The company also cites that, if the purchase is prevented by the CMA, the agency could hinder Giphy against competitors, already acquired by other giants, such as Tenor (from Google) and Gifycat (Snapchat).
“It will be imperative that the CMA consider the suitability of the proposed potential buyer very carefully to ensure the buyer has the funds, market knowledge and management structure to enable GIPHY to begin rebuilding and compete vigorously.”