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Figma and Adobe abandon proposed merger

figma.com

21–30 of 1001 posts

Re: Figma and Adobe abandon proposed merger

#21

Honestly, as a Figma user and fan, this is great news. For Figma employees probably not so much.

They will go public and can unload then. It’s an opportunity for figma to offer their customers early access to shares before IPO. Many of us will support them.

Re: Figma and Adobe abandon proposed merger

#22

There's a $1B fall through fee, I assume that gets paid to Figma now? I wander if that will make its way to early employees who were hoping for a liquidity event.

I would expect that to only get paid if solely one side were responsible for blowing up the deal. This is expressly saying both have mutually agreed.

Re: Figma and Adobe abandon proposed merger

#23

It looks like regulators are actually doing their job. I would love to see more of this, along with breaking up companies that have gotten too big for their britches.

The entire purpose of starting a company is to get acquired. Of the literally hundreds of companies that YC has invested in, only 5 have gone public. The VC market will dry up even more if they see their chances of an exit diminishing because of an overzealous government.

Or we’ll see more IPOs. It might change valuations as expectations might be lower but it won’t dry up the VC market.

Re: Figma and Adobe abandon proposed merger

#24

It looks like regulators are actually doing their job. I would love to see more of this, along with breaking up companies that have gotten too big for their britches.

The entire purpose of starting a company is to get acquired. Of the literally hundreds of companies that YC has invested in, only 5 have gone public. The VC market will dry up even more if they see their chances of an exit diminishing because of an overzealous government.

The purpose of a for profit company is to provide a good or service and profit from doing so. You don’t need to be acquired to accomplish that.

Re: Figma and Adobe abandon proposed merger

#25

It looks like regulators are actually doing their job. I would love to see more of this, along with breaking up companies that have gotten too big for their britches.

The entire purpose of starting a company is to get acquired. Of the literally hundreds of companies that YC has invested in, only 5 have gone public. The VC market will dry up even more if they see their chances of an exit diminishing because of an overzealous government.

The entire purpose of antitrust regulation is to prevent monopolization.

Both those things can be true and both can be legitimate interests.

Re: Figma and Adobe abandon proposed merger

#26

It looks like regulators are actually doing their job. I would love to see more of this, along with breaking up companies that have gotten too big for their britches.

The entire purpose of starting a company is to get acquired. Of the literally hundreds of companies that YC has invested in, only 5 have gone public. The VC market will dry up even more if they see their chances of an exit diminishing because of an overzealous government.

> The entire purpose of starting a company is to get acquired.

The vast majority of companies are little "lifestyle" businesses without any intention of ever getting acquired by anyone. Your local pizza shop doesn't expect to be a unicorn.

Re: Figma and Adobe abandon proposed merger

#28
post #13

Earlier quoted context omitted.

Except outlawing acquisitions by larger tech companies will absolutely reduce funding and incentives to start companies, and result in less products, less companies, and less competition.

This is so far from outlawing. And we are soooooo far from having a shortage of tech startups.

> 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.

Re: Figma and Adobe abandon proposed merger

#29

It looks like regulators are actually doing their job. I would love to see more of this, along with breaking up companies that have gotten too big for their britches.

The entire purpose of starting a company is to get acquired. Of the literally hundreds of companies that YC has invested in, only 5 have gone public. The VC market will dry up even more if they see their chances of an exit diminishing because of an overzealous government.

> The entire purpose of starting a company is to get acquired.

or to make profit. Being acquired used to mean you failed, and had to suck your pride in and let someone else buy you out to pay off your debts.

Re: Figma and Adobe abandon proposed merger

#30
post #13

Excellent news. I think there should be more products, more companies, and more competition. Adobe just buying up it's competition will only ever directly hurt consumers. See also, "Adobe says the FTC is looking into its subscription cancellation practices." https://www.theverge.com/2023/12/15/24003532/adobe-says-the-...

Except outlawing acquisitions by larger tech companies will absolutely reduce funding and incentives to start companies, and result in less products, less companies, and less competition.

I'm fine with some other company buying-up Figma, just not Adobe. Microsoft could buy them (and hopefully not repeat what happened to Expression Blend) - or maybe Alludo could resurrect the Corel brand and launch Figma under that title?
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