Another interesting layer to this is that Adobe only has $5b in cash according to their balance sheet, so the overwhelming majority of this deal is probably in Adobe stock with a long vesting period. Also the deal being done in a downturn means that the difference between this and an IPO is academic in my view
Re:Adobe to acquire Figma for $20B
by unstrategic on Thursday September 15, 2022 @06:26PM
(#32859244)
> the difference between this and an IPO is academic in my view
More theatrical than academic — if both options have a risky short-term outlook, optimize for the story.
Sold for $20B? Or lackluster IPO? As GP of a VC fund, which story is going to better-enable you to raise your next several funds?
Why do you think there will be a long vesting period?
Vesting periods are quite common in employee incentives but not at all common in mergers and acquisitions.
While being pummeled by public markets, and being forced to make a move that might keep shareholders from calling for blood.
This is certainly not the first time that Adobe has presented a number to Figma's board — but it has to be the biggest number yet, by far.
From Figma's position: take your chances on an IPO while the Fed is cracking skulls around inflation — or flip the bit on that liability, and cash out to a desperate Adobe?