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Another interesting layer to this is that Adobe only has $5b in cash according to their balance sheet, so the overwhelming majority of this deal is probably in
by majani 4y ago
Another interesting layer to this is that Adobe only has $5b in cash according to their balance sheet, so the overwhelming majority of this deal is probably in Adobe stock with a long vesting period. Also the deal being done in a downturn means that the difference between this and an IPO is academic in my view
- unstrategic 4y ago> the difference between this and an IPO is academic in my view More theatrical than academic — if both options have a risky short-term outlook, optimize for the story. Sold for $20B? Or lackluster IPO? As GP of a VC fund, which story is going to better-enable you to raise your next several funds?
- wikfwikf 4y agoWhy do you think there will be a long vesting period? Vesting periods are quite common in employee incentives but not at all common in mergers and acquisitions.
- majani 4y agoBecause it's just common sense to not want close to $20 billion of stock flooding the market in a short period of time