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Figma and Adobe abandon proposed merger

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Re: Figma and Adobe abandon proposed merger

#131

Post by ThomPete »

I see a lot of people in the thread thinking this is a good thing, it's not.

First of all the reason for the UK not allowing the merger is completely absurd and based on a false premise which is most likely based on not understanding the field they are regulating.

Regulation based on speculation about the future means that regulators can simply just make up reasons. Thats akin to when kings could just make up reason for their ruling. We were supposed to move away from that so that rule of law was the base.

Second, the fact that the UK can kill a deal like this is wildly problematic and unfortunately not the first time. They did the same with Facebook and Giphy where it made no sense either. It's immature and they obviously aren't understanding the field they regulate. Talk about undermining the growth of society.

Lastly I see a lot of people saying exits is not a good thing and shouldn't be the purpose. But the fact is that a healthy M&A culture is good for startups as that will encourage investors. Once you start killing the ability for exits by introducing such unquantifiable into the settings you are making investors more nervous of spending their money and much more risk averse.

Sad.

Re: Figma and Adobe abandon proposed merger

#132

Post by airstrike »

zlwaterfield wrote: post #8

This is sad for the overall M&A market. Companies are going to be scared to enter into these agreements because it’s just a waste of time and money when it inevitably ends up like this.

It's sad for the bad part of the M&A market that is against competition. there's tons of good M&A that will still get approved. it's not bad that companies need to think twice and consider anti-trust before getting deals done

Re: Figma and Adobe abandon proposed merger

#133

Post by dkyc »

sp332 wrote: post #103
dkyc wrote: post #50

Earlier quoted context omitted.

The reality is that for extremely high-growth companies such as Figma, only companies with an extremely strong existing business and strategic fit can afford to acquire them. Corel, for example, was valued at $1bn in their 2019 acquisition. There's absolutely no way they could acquire Figma. At the same time, VCs are betting on Figma-like outsized exits for their model work. I get people are dying to stick it to the…

How would Figma be disruptive or weakening tech giants if their plan is to be acquired by them?

Clearly Figma is providing a valuable product to the market. In part visible here by how people celebrate this decision. But people are celebrating Figma's continued independence without understanding that without the possibility of being acquired for a large amount of money, the funding and incentive situation that resulted in the beloved independent Figma wouldn't exist.

This is not as much about Figma, which is big already and will be fine, but the 100 other potential Figmas that might not even been started yet. They will have more difficulty finding funding, attracting employees with equity, etc., when the scenario 'big tech co acquires company for lots of $' doesn't exist anymore.

Why would anyone go worth at a small company for equity if there's no chance to get liquidity? Why would investors invest? This decision might improve the short-term situation of the market, but over the long-term, I can only see how it benefits the big companies, which rely on today's cashflows / RSUs to attract people.

Re: Figma and Adobe abandon proposed merger

#134

Post by danieljacksonno »

max_ wrote: post #112

This really makes me sad as an aspiring entrepreneur. What would be the use of starting a business if the government can arbitrarily block it from being acquired? I understand this happening in Europe but not America. I think America is going to lag behind in tech entrepreneurship just like Europe and I wonder what the next potential tech entrepreneurship hub will be.

The use would be to make a profit

Re: Figma and Adobe abandon proposed merger

#136

Post by capableweb »

wolfpack_mick wrote: post #96
capableweb wrote: post #55

Earlier quoted context omitted.

> Prices will creep up, product segmentation will be introduced, pop-ups pushing expensive service add-ons will eventually appear Have you used Figma lately? All of those things have been happening for years with Figma, even before rumors about the Adobe purchase appeared.

In terms of pricing model Adobe is generous compared to Figma. Someone with their own creative cloud subscription can open my .psd's. But if I want to collaborate with someone in Figma, I need to pay for their access even if they have their own paid Figma account.

Absolutely, that I agree with.

But even so, Figma's prices have been increasing, the product is being segmented, they're increasingly pushing for various addons, even if Figma still is cheaper than Adobe.

Re: Figma and Adobe abandon proposed merger

#137

Post by robertlagrant »

capableweb wrote: post #76
endisneigh wrote: post #72

Earlier quoted context omitted.

Both provide services.

Ok, lets hear you argue for what service a patent troll provides.

Seems like if you've only come up with patent trolls, then "plenty of companies" doesn't apply. Patent trolls weaponise the legal system against other companies. They exist because the government can't make a good enough patent system.

They don't seem to be significant enough to the overall general statement that companies exist to serve their customers with goods and/or services.

Re: Figma and Adobe abandon proposed merger

#138

Post by evrydayhustling »

airstrike wrote: post #92
robertlagrant wrote: post #28

Earlier quoted context omitted.

> This is so far from outlawing It's not that far. A bureaucrat will decide if you can exit the way you want to. Still want to fund this venture? > And we are soooooo far from having a shortage of tech startups. Because there hasn't been a fear of them blocking exits.

> A bureaucrat will decide if you can exit the way you want to. It's not up to the bureaucrat but to the courts. The FTC doesn't "approve" or "reject" deals--it can just take legal action to try to stop a deal, but that still gets adjudicated either in a federal court or in an FTC administrative law court to a judge which is appointed independently. https://www.ftc.gov/enforcement/merger-review https://www.ftc.gov/le…

Adding a legal battle with the FTC to the cost of any acquisition can chill and kill otherwise obvious deals, and or sap value out of those that push through.

FWIW, I think there are good reasons to limit tech consolidation, including this one. But anyone should realize that it will reshape the industry in unpredictable ways, including some that harm "real" consumers and builders.

Re: Figma and Adobe abandon proposed merger

#139

Post by robertlagrant »

Drakim wrote: post #129
robertlagrant wrote: post #108

Earlier quoted context omitted.

> in most cases the government just allows shit like this to happen Good. Agreements should as much as possible be free between consenting parties. It shouldn't be normal to expect the government to be involved in approving things except where there's a great reason to need it.

Especially things like when a company owns the entire town and pays their workers in scrip. Both the company and worker is a consenting party, so the government should stay out of it. The problem with this ideology is that will destroy society and reduce it to ashes.

You think this is "ideology" that will cause that?

> It shouldn't be normal to expect the government to be involved in approving things except where there's a great reason to need it.

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