How much does figma lose from a year's worth of operational focus being distracted by this impending merger?
Adobe is paying Figma a 1 billion dollar breakup fee this week. Sounds like a very good deal for Figma.
Figma and Adobe abandon proposed merger
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Re: Figma and Adobe abandon proposed merger
#452Earlier quoted context omitted.
Nope, from Adobe’s 8K filed today with the SEC: “On December 17, 2023, the Company and Figma mutually agreed to terminate the Merger Agreement and entered into a mutual termination agreement effective as of such date (the “Termination Agreement”). The mutual termination of the Merger Agreement was approved by the Company’s and Figma’s respective Boards of Directors. In accordance with the terms of the Termination Agr…
If I was the board I’d be calling for the CEO’s head after loosing $1 billion for absolutely nothing.
not nothing: they got to examine Figma's books, IP/code, staff, etc where Figma got to see nothing about Adobe.
Re: Figma and Adobe abandon proposed merger
#453Earlier quoted context omitted.
There was only one company to which Figma was worth $20 billion and that was Adobe, because it was a long term threat. I just hope Google or Msft doesn't get any funny idea to buy Figma.
I could definitely see MSFT making an attempt, to bring Figma + VSCode closer together.
Sush… don’t give them any ideas
Re: Figma and Adobe abandon proposed merger
#454Earlier quoted context omitted.
Sketch still exists and is not only very good, but in many ways better.
In what ways is it better? I've found Figma to be vastly superior, especially since they treat design like development, automating tedious processes like manually tweaking the layout and instead having a version of flexbox literally built into the design ("auto constraints"). They're bringing web dev and mobile dev ideas into design software.
My information might be out-of-date, because I gave up on Figma years ago, and I recalled Sketch being significantly more powerful as an actual design tool. But now I'm looking up differences and it seems Figma has improved in areas it was weak in previously, like not having color profiles. From their feature lists they seem about identical.
Re: Figma and Adobe abandon proposed merger
#455Earlier quoted context omitted.
What's wrong with selling goods and services for more than they cost?
There is nothing wrong with that if that is the type of company you build from the start. VC funded startups generally want to have an exit/IPO to get a return for their investors and give their founders and employees an opportunity to cash out and de-risk. Without an exit or IPO that is a lot harder, especially for employees. It's about the expectation of everyone involved. Eventually every company needs to turn a p…
“Everyone involved” includes customers
Re: Figma and Adobe abandon proposed merger
#456Earlier quoted context omitted.
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.
Nope, from Adobe’s 8K filed today with the SEC: “On December 17, 2023, the Company and Figma mutually agreed to terminate the Merger Agreement and entered into a mutual termination agreement effective as of such date (the “Termination Agreement”). The mutual termination of the Merger Agreement was approved by the Company’s and Figma’s respective Boards of Directors. In accordance with the terms of the Termination Agr…
Incredible that they have $1b sitting around in cash. Wouldn't you at least put it into a bond or treasury?
Re: Figma and Adobe abandon proposed merger
#457Earlier quoted context omitted.
> Software engineers are mercenaries hired to create value for shareholders, and anything else is just delusion. Value is a sustainable product, not some shovelware piece of crap. If the shareholders don't see that then that's their problem, and it's probably best to part ways and warn everyone you know from working with them.
The truth is probably somewhere between yours and Invictus0 comment
This is essentially what I replied to the comment with. Hard agree.
Re: Figma and Adobe abandon proposed merger
#458Earlier quoted context omitted.
> 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.
How 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.
Might be technically possible from an app, but in the USA, the backoffice won't approve it without one-on-one interaction.
Re: Figma and Adobe abandon proposed merger
#459It 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 problem is nearly all company mergers, both big and small, are detrimental to competition... Even my local corner store merging with a corner store in the next town over is bad for suppliers (combined negotiations when buying stock), and bad for consumers (prices set the same between the two towns). I wonder what a world where company mergers were banned would look like?
>The problem is nearly all company mergers, both big and small, are detrimental to competition...
Mergers are not the only way in which market concentration happens though. You can't ban asset sales and you can't ban companies from hiring employees of weaker or defunct competitors.
If the owners of Figma decided that Figma wasn't viable as a standalone company, they could sell the software and fire all employees so they could be re-hired by whoever bought the software. No regulator in the world would mandate the software to be destroyed and the employees exiled.
Also, I don't think a market without mergers and acquisitions would necessarily be very competitive. It could well trend towards an equilibrium where a few big incumbants would rule their respective turfs unchallenged and a large number of tiny companies without the capital to do anything big.
I think merging legal entities is just a more efficient, less messy way of handling asset sales.
Re: Figma and Adobe abandon proposed merger
#460How much does figma lose from a year's worth of operational focus being distracted by this impending merger?
I guess not much seeing what they have been shipping.