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> the Company will make a cash payment to Figma in the previously agreed amount of one billion dollars ($1,000,000,000) (the “Termination Fee”) within three bus
by reustle 3y ago
> the Company will make a cash payment to Figma in the previously agreed amount of one billion dollars ($1,000,000,000) (the “Termination Fee”) within three business days following the date thereof
Three business days to wire $1b, the week before Christmas. That has to be a fun phone call with the bank.
- Ekaros 3y agoI hope they have big bank... Then again it would also be funny if bank crashed because someone was forced to transfer 1 billion.
- eddiewithzato 3y agobanks move so much more daily
- fauigerzigerk 3y agoIndeed. Also, the money is probably coming out of some money market fund or from selling treasuries.
- Vicinity9635 3y ago[dead]
- frankchn 3y agoIn October, FedWire moved $4.275 trillion USD per day on average.
- zymhan 3y agoYeah I'm sure Adobe is just using a single-branch bank
- tsunamifury 3y agoHow is this an issue? You can easily wire up to 999 million with just a mobile device any work day. If you think im joking no I’ve designed it for major banks.
- TedDoesntTalk 3y agoMight be technically possible from an app, but in the USA, the backoffice won't approve it without one-on-one interaction.
- JumpCrisscross 3y ago> in the USA, the backoffice won't approve it without one-on-one interaction For a business like Adobe, yes. They’ll probably want a verification call. Plenty of funds, however, handle similarly-sized transactions with completely electronic verifications.
- tsunamifury 3y agoYea I mean how do people think large companies do things like payroll which is easily more than this monthly.
- TedDoesntTalk 3y agoPayroll is done with ACH, not wire transfer. ACH is reversible so it has fewer controls. Wires are not (generally) reversable.
- tsunamifury 3y agoTechnical Protocol doesn’t matter we’re talking approval and liquidity here. ACH/Wire same dif.
- JumpCrisscross 3y ago> Payroll is done with ACH, not wire transfer For large payrolls, it would be done over wire (between the employer and payroll processor). The employer has leverage and wants to keep the float.
- kasey_junk 3y ago
- microtherion 3y agoBank is going to have to dip deep into their swear jar to come up with the money.
- jzl 3y agoHah, reminds me of this: https://youtu.be/7C1Zaqu0wrw https://youtu.be/7C1Zaqu0wrw
- deleted 3y ago[deleted]
- dubcanada 3y agoHere is how it is going to go, Adobe will tell their accountant to wire the money, the accountant will get the details from Figma. Adobe accountant will call their bank or maybe even go in to the branch. And tell them they are sending X to X. It will take a few stamps and confirmation and it will be done in about 5 mins. Some computer somewhere will go - 1 billion Adobe and + 1 billion Figma. On the bank side nothing really happens unless Figma decides it wants to withdrawal all 1 billion. Then X bank will owe Y bank money, that loan will be balanced at some point. It will probably take a few days so Figma will be told it needs a few days. Even if Figma decides to pay all their employees a share, that's also just - 50k Figma, + 50k Bob Smith in a computer somewhere. There is no actual exchange of money until stuff is balanced at some point or you withdrawal. It's all just 1s and 0s in a record.
- disiplus 3y agoThere is for sure exactly defined in the paperwork where the money will go in case of x. That was at least so when we sold our company.
- vl 3y agoThe problem here is not doing the transfer, but holding 1 cool B in cash being ready to transfer. Even if it is in liquid assets, 3 days to liquidate 1B is quite short.
- M2Ys4U 3y agoIt wouldn't surprise me if the timing of the execution of the termination agreement was agreed for after Adobe had liquidated assets.
- bombcar 3y agoThat’s what lines of credit are for if needed. A company of Adobe’s size should be able to obtain that easily (maybe even on a handshake). Their latest report with the SEC would indicate how much “cash” they regularly have on hand.