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Figma and Adobe abandon proposed merger

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Re: Figma and Adobe abandon proposed merger

#481

Post by siliconwrath »

C0mm0nS3ns3 wrote: post #463
tristan957 wrote: post #401

Earlier quoted context omitted.

The DOJ was surely going to sue, and most likely win. Adobe killed their own worse product to buy a competitor. Seems like an open and shut case. Your analysis seems extremely short-sighted.

So you're saying if you try to build a product, fail and want to acquire that product from another company - now that you have 0 competition with that product - that should somehow be illegal? Why exactly? Also what product did Adobe had that was in direct competition with Figma?

Adobe XD: https://en.wikipedia.org/wiki/Adobe_XD

Re: Figma and Adobe abandon proposed merger

#482

Post by callalex »

fairity wrote: post #392

> Fifteen months into the regulatory review process, Figma and Adobe no longer see a path toward regulatory approval How in the world did it take fifteen months for regulators to reject this? That’s an absurdly long time to be operating a business in limbo, and I have to assume it’s the regulators dragging their feet since the companies have every incentive to move quickly. I don’t have an opinion on whether or not t…

Keep in mind that you are reading a corporate press release/propaganda piece, not journalism. It is going to be inherently one sided and will not tell the whole truth. Never take these kinds of statements at face value.

Re: Figma and Adobe abandon proposed merger

#483

Post by Levitz »

JadoJodo wrote: post #218

While I do see this as great news (for all the reasons others have outlined), I wonder how this will impact VC in the future; If the current goal is for companies to get VC money, burn that cash for years and years and years, and then have a huge IPO or acquisition (that makes it all worth it), it would seem regulatory issues would start to scare away investment.

>it would seem regulatory issues would start to scare away investment.

Or maybe the goal ought to change.

Maybe everything getting acquired by a huge corporation is not a good thing.

Re: Figma and Adobe abandon proposed merger

#484

Post by Narretz »

C0mm0nS3ns3 wrote: post #463
tristan957 wrote: post #401

Earlier quoted context omitted.

The DOJ was surely going to sue, and most likely win. Adobe killed their own worse product to buy a competitor. Seems like an open and shut case. Your analysis seems extremely short-sighted.

So you're saying if you try to build a product, fail and want to acquire that product from another company - now that you have 0 competition with that product - that should somehow be illegal? Why exactly? Also what product did Adobe had that was in direct competition with Figma?

Adobe XD was a Figma competitor. However, Adobe stopped development after they announced the Figma merger, and you can still use it today.

Re: Figma and Adobe abandon proposed merger

#485

Post by charcircuit »

noirscape wrote: post #191
madeofpalk wrote: post #6

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-...

Adobes cancellation practices are literally illegal in the Netherlands by the way. The deceptive trick of "pay monthly for a full year" and then hitting you with the cancellation fee is against local law. (It's called de wet van Dam for the curious.) You have to threaten their customer support with legal complaints to make them comply with it, it's super frustrating to deal with. They do fold immediately when you do…

>hitting you with the cancellation fee is against local law. (It's called de wet van Dam for the curious.)

I doubt this. The early termination fee is 50% what you were obligated to pay. If Adobe got rid of this than consumers would have to pay 100% of this. De wet van Dam is about the about not being able to cancel the subscription itself and not about being able to pay to get out of what you were suppsoed to pay for a subscription period.

Keep in mind there is a normal monthly subscription and when buying the product the three choices of monthly, annual billed monthly, and yearly billed up front are equally displayed.

Re: Figma and Adobe abandon proposed merger

#486

Post by unethical_ban »

sowbug wrote: post #196
codeptualize wrote: post #126

That is wild. It's a good thing as it means Adobe won't ruin Figma like they did with so many great software products before, but just imagine founders, investors and employees, thinking they had a really good exit.. That must hurt, I hope they can stay motivated. If Adobe can't buy them, what other exit options do they have? Go public?

What's wrong with selling goods and services for more than they cost?

What are you replying to?

edit: Got it. I just woke up when I asked.

Re: Figma and Adobe abandon proposed merger

#487

Post by ajmurmann »

Bjorkbat wrote: post #473
fairity wrote: post #392

> Fifteen months into the regulatory review process, Figma and Adobe no longer see a path toward regulatory approval How in the world did it take fifteen months for regulators to reject this? That’s an absurdly long time to be operating a business in limbo, and I have to assume it’s the regulators dragging their feet since the companies have every incentive to move quickly. I don’t have an opinion on whether or not t…

I would argue that the regulators made their point pretty clear early on when the DOJ opened a lawsuit against Adobe. The people most responsible for keeping this in limbo were Adobe’s lawyers.

The Broadcom & VMware merger took similarly long and was approved. The duration is completely unacceptable and poison to business. I'm general against mergers and think it's better for consumers and the market if competitors fight to the (metaphorical) death instead, but if we do something, let's do it smoothly and right.

That said, for mergers like that a ton of countries are involved which makes things even more complicated and makes it harder to point out where we need to make things smoother.

Re: Figma and Adobe abandon proposed merger

#488

Post by ajkjk »

JadoJodo wrote: post #218

While I do see this as great news (for all the reasons others have outlined), I wonder how this will impact VC in the future; If the current goal is for companies to get VC money, burn that cash for years and years and years, and then have a huge IPO or acquisition (that makes it all worth it), it would seem regulatory issues would start to scare away investment.

Yeah, can't wait.

Re: Figma and Adobe abandon proposed merger

#489

Post by bragr »

tsunamifury wrote: post #448
reustle wrote: post #100

Earlier 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.

Sending a billion dollars is not the same thing as having a billion liquid dollars in one place to send. It is the difference between Accounts Payable and the Finance department of a company

Re: Figma and Adobe abandon proposed merger

#490

Post by vasco »

TedDoesntTalk wrote: post #456
eigenvalue wrote: post #75

Earlier 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…

Incredible that they have $1b sitting around in cash. Wouldn't you at least put it into a bond or treasury?

Nothing that is public that I've seen says this is true. You can get a bridge loan for $1b backed by whatever iliquid assets you have from any major bank, and then it's up to you how quickly you want to unwind other things. The loan might even be interest free if the bank wants to keep Adobe's business for other M&A activities.
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