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Figma and Adobe abandon proposed merger

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Re: Figma and Adobe abandon proposed merger

#501

Post by todd-davies »

heyoni wrote: post #411
sowbug wrote: post #196

Earlier quoted context omitted.

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

I think the issue is that when you buy up your competition there’s nothing stopping you from charging obscene prices in either direction. Charge low to wipe out potential competitors then high when there’s no one left. It very clearly stifles innovation and god knows we don’t regulate monopolies anymore.

Dropping prices below cost to wipe out competitors is predatory pricing which is prohibited under the antitrust laws. It's not always easy to prosecute, but it against the law nevertheless.

Re: Figma and Adobe abandon proposed merger

#502

Post by xvector »

ethbr1 wrote: post #496
ajmurmann wrote: post #487

Earlier quoted context omitted.

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 co…

This would have gone quickly, to no, if Figma and Adobe had taken the first answer they got from DoJ at face value.

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Re: Figma and Adobe abandon proposed merger

#503

Post by JumpCrisscross »

TedDoesntTalk wrote: post #458
tsunamifury wrote: post #448

Earlier quoted context omitted.

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.

> in the USA, the backoffice won't approve it without one-on-one interaction

For a business like Adobe, yes. They’ll probably want a verification call. Plenty of funds, however, handle similarly-sized transactions with completely electronic verifications.

Re: Figma and Adobe abandon proposed merger

#504

Post by ethanbond »

chiefalchemist wrote: post #315
ethanbond wrote: post #254

Earlier quoted context omitted.

Your definition is the social media-fueled snake oil meme.

One very simply question: What defines value better than an exit? Or the offer to exit? (Hint: Nothing.) You might not like the definition, but that doesn't mean it's wrong.

So that value just magically appears at the moment of offer to exit?

Re: Figma and Adobe abandon proposed merger

#505

Post by saghm »

unethical_ban wrote: post #486
sowbug wrote: post #196

Earlier quoted context omitted.

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.

I think they're responding to the question "If Adobe can't buy them, what other exit options do they have? Go public?". It's a bit tongue in cheek, but it's a fair point that we're in a weird place if the idea of founding a company with the goal of being sustainably profitable indefinitely rather than just being acquired by a much larger company is somehow the suboptimal backup plan rather than the main goal.

Re: Figma and Adobe abandon proposed merger

#506

Post by JumpCrisscross »

iamleppert wrote: post #125
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…

If I was the board I’d be calling for the CEO’s head after loosing $1 billion for absolutely nothing.

> If I was the board I’d be calling for the CEO’s head after loosing $1 billion for absolutely nothing

The Board signed off on the deal. Given Adobe’s stock is up for the day, I don’t think shareholders are crying over this termination fee.

Re: Figma and Adobe abandon proposed merger

#507

Post by pesfandiar »

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?

It doesn't make anyone rich quickly.

Re: Figma and Adobe abandon proposed merger

#508

Post by JAlexoid »

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…

When it comes to whole market altering merger - they don't take that long.

The negotiations took that long, to come to nothing. Clearly Adobe couldn't come up with a solution to the problem of a potential monopoly.

Most M&As happen quite quick, mostly dealing with acquiring companies that are outside of the purview of regulators.

Re: Figma and Adobe abandon proposed merger

#509

Post by jorblumesea »

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…

Regulators were always opposed to this merger, it's Adobe that wanted to fight it out.

> you can expect a serious chilling effect on M&A

Oh no, less corporate consolidation. The horror. Won't someone think of the capital class for once?

Re: Figma and Adobe abandon proposed merger

#510

Post by tsunamifury »

bragr wrote: post #489
tsunamifury wrote: post #448

Earlier quoted context omitted.

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

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