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Yes, but there is no way it would cost Adobe even close to $20 billion to develop an analogues product. Well you said: > This means Adobe might actually have
by qwytw 3y ago
Yes, but there is no way it would cost Adobe even close to $20 billion to develop an analogues product.
Well you said:
> This means Adobe might actually have to pay a little bit more for Figma if they acquired them now.
Which is very unlikely in the current market if they were a public company.
- senttoschool 3y ago>Yes, but there is no way it would cost Adobe even close to $20 billion to develop an analogues product. This, I'm not familiar with. However, I will say that time to market is important too. By the time Adobe can come up with a cloud-native competitor to Figma, Figma might have come up with a cloud-native competitors to Photoshop and Illustrator. >Which is very unlikely in the current market if they were a public company. Why not? Nasdaq is 13% higher today than in September 2022 when they announced the deal. Adobe itself is 25% higher now. Arguably, tech valuations have stabilized and increasing again.
- qwytw 3y agoBecause a 50 P/S ratio would be unusually high (I'm of course trying to say that IMHO Adobe is significantly overpaying) Figma is a private company, of course it depends on figures as well which are not publicly available but no comparable public companies are valued that high after the 2021 peak. However unlike most comparable tech companies it is supposedly profitable (not clear if GAAP, though) which would increase it's valuation.