Re:Figma and Adobe are abandoning our proposed merger
by mathattack on Monday December 18, 2023 @05:05PM
(#38689010)
Making it an investment could be tripped up by whatever might trip up a merger. It’s also more difficult to value the investment. (How much equity should they give up? Same valuation as the implied purchase?)
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Re:Figma and Adobe are abandoning our proposed merger
by vlovich123 on Monday December 18, 2023 @05:24PM
(#38689256)
Maybe? I haven’t heard of any regulatory oversight of investments, only mergers. Do you have any links I can read up more on this?
As for valuation, same as valuations a purchase or how they get valued whenever there’s a round of investment (basically you do a sophisticated argument over value using comparables as a way to try to establish a baseline). The equity purchased would equal how much cash gets infused vs the valuation established by the deal.