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If I was the board I’d be calling for the CEO’s head after loosing $1 billion for absolutely nothing.
by iamleppert 3y ago
If I was the board I’d be calling for the CEO’s head after loosing $1 billion for absolutely nothing.
- jefftk 3y agoIf the value of Figma has fallen by more than $1B since they signed the deal (which I think it probably has) then passing up $1B to get out of the deal is not nuts, especially considering the regulatory opposition. Though it depends more on whether the value of Figma to Adobe and less the agreed acquisition cost has fallen below -$1B, since Adobe was presumably agreeing on a deal that they thought gave them significant surplus.
- mattmaroon 3y agoIt’s a common term in these sorts of acquisition attempts now. AT&T paid T-mobile $3 billion. A failed acquisition attempt can be very damaging to the company being acquired. You can lose employees who don’t want to work at the new entity that never happened. It can change your product roadmap (are you really going to invest in directions the acquirer won’t want after completion?) and make your executive team start job hunting. Etc. So it’s not unreasonable or uncommon for the acquirer to agree to such a provision. And the board was presumably highly involved in a large offer like that.
- asah 3y agonot nothing: they got to examine Figma's books, IP/code, staff, etc where Figma got to see nothing about Adobe.
- JumpCrisscross 3y ago> If I was the board I’d be calling for the CEO’s head after loosing $1 billion for absolutely nothing The Board signed off on the deal. Given Adobe’s stock is up for the day, I don’t think shareholders are crying over this termination fee.
- whimsicalism 3y agoinvestors probably figured this out on Dec 13, not today
- mattmaroon 3y agoAre you implying the dip then was due to insider trading? That’s a big charge.