Meta, the owner of Facebook, admitted defeat Tuesday after U.K. competition regulators issued a final verdict ordering the company to sell its animated image making unit Giphy.
Citing the risk of a substantial lessening of competition in the social media and display advertising market, the Competition and Markets Authority said Tuesday that Meta must "sell GIPHY, in its entirety, to a suitable buyer." It is not yet clear which company will step in to buy Giphy.
In a statement, a Meta spokesperson said the company was "disappointed by the CMA's decision but accept today's ruling as the final word on the matter."
"We will work closely with the CMA on divesting GIPHY," the Meta spokesperson told CNBC. "We are grateful to the GIPHY team during this uncertain time for their business, and wish them every success. We will continue to evaluate opportunities - including through acquisition - to bring innovation and choice to more people in the UK and around the world."
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