Based on last published accounts (2022) Serif is very profitable and growing strongly: revenue £31.2m (up from £23.4m) and operating profits £17.9m (up from £14.4m). So it doesn't seem like they needed to sell. Of course it is still small in the scheme of things - Canva seems to have revenue of c$2bn - and seems to be owned by three individuals in their 50s so one can probably understand why they wanted to to sell.
>So it doesn't seem like they needed to sell. They probably didn’t need to sell (but who knows) but an offer of a buyout at a 20x multiple (based on the Bloomberg report) when the core business faces competition from Adobe and Canva, not just for core features where depending on context, Serif can do quite well, but also in the burgeoning AI-assisted space, where Serif has zero ability to compete (and AI is a big par…
Photoshop’s new AI tools are an absolutely incredible timesaver. Jobs that would have taken 30+ minutes (and probably wouldn’t look great) can now take 30 seconds. It was kind of amazing watching the perception shift online in photography groups from “AI is evil!” to “Wow, this is really helpful.”
There’s no way they could keep competing, even if they tried to take something off the shelf like Stable Diffusion and integrating it. Without some sort of subscription they’d need to have people run it locally, and that’s really only feasible with high end Nvidia cards too. I suppose the initial plan might be to add tools like that, have a separate subscription for that, and boil the frog to a full subscription.