Shutterstock to buy Giphy from Meta Platforms for $53 million in cash

Shares of Shutterstock Inc.
SSTK,
+3.46%
rallied 4.4% in premarket trading Tuesday, after the digital media and marketing company announced an agreement to buy GIF and stickers company Giphy Inc. from Meta Platforms Inc.
META,
-0.29%
for $53 million in cash. Meta shares slipped 0.2% ahead of the open. As part of the deal, Meta has entered into an application programming interface (API) agreement with Shutterstock, to ensure continued access to Giphy’s content across Meta’s social-media platforms. Shutterstock said the deal, which is expected to close in June, should add “minimal revenue” in 2023. The company will fund the deal with cash-on-hand and with its revolving credit facility. The stock has tumbled 28.9% over the past three months through Monday while Meta shares of soared 44.3% and the S&P 500
SPX,
-0.39%
has gained 4.5%.