3 ms·
Adobe pays a high valuation in an inflated market for Figma, to continue showing growth that has mostly stalled. Also helps them cross-sell their other products
by neosat 4y ago
Adobe pays a high valuation in an inflated market for Figma, to continue showing growth that has mostly stalled. Also helps them cross-sell their other products once they get into smaller companies where Figma has a strong foothold.
Market Tanks, valuations tank (to reasonable levels or perhaps still slightly inflated levels but not as crazy as before)
Generative AI brings a new threat (and new potential acquisition targets in the near future)
Adobe: How do we get out of this (now) bad deal? .....Oh wait..
DOJ: Preps anti-trust suit
... now Speculating....
Adobe doesn't really contend strongly the anti trust charge.
Pays $1B or so (saves $19B for future acquisitions)
Figma......some dreams crushed, but I guess $1B is not too shabby
- ohmanjjj 4y agoEricsson tried that strategy with Vonage. Failed and paid $6B for a $500M business at best.
- eastbound 4y agoWhy don’t such companies just create a venture fund with 49% ownership to buy all the small actors? They could even call it “funding the competition so that there is some”.
- danielfoster 4y agoThis would be an interesting play, but Adobe likely agreed to use "best efforts" to complete the transaction as part of the deal. This would include putting up a strong defense to any anti-trust lawsuits Any sort of shenanigans in this area would almost certainly leave a paper trail.