Adobe Bought Figma for $20 Billion! Details Here
Adobe bought Figma for $20 Billion and thereby wiped out its biggest competitor in digital design, making it the biggest news for the world of digital creative technology, according to reports.
The day ended with Adobe announcing the acquisition of Figma, which coincided with their quarterly earnings.
Adobe reported fourth-quarter revenue of $4.43 billion and earnings per share of $3.40, both of which exceeded expectations.
Adobe, on the other hand, would be acquiring a loan to tide over the purchase of Figma and has reduced its forecast for the next quarter to $4.50 EPS and $4.52 billion in turnover.
The reasons given by them are the sluggish economic outlook. Their shares were trading 10% lower than usual because Adobe had hoped that buying out a competitor would give its business a boost.
People liked how much simpler Figma is as a design tool than Adobe. Some are concerned about Adobe’s complex interface and, more broadly, Adobe’s attitude toward users.
Not only are stock brokers and investors concerned, but many internet users have posted comments expressing their concerns about normal usage.
The buy-out has been divided into 50 per cent cash and 50 per cent stock options, and another 6 million will be allocated for a restricted stock for Figma CEO and employees.
They will continue working with Adobe for more than four years until closing. This understanding is, however, subject to various legalities and approvals, including the go-ahead from Figma shareholders.
4 Million People Use Figma
More than 4 million people use Figma, and their strengths are modern methods used for their products. Adobe’s strengths lie in acquisitions of various companies in digital creation, and their core is design, but now they have a strong marketing arm.
Their products are well known, and everyone in imaging and design uses their products.
AdobeXD is similar to what Figma provides, but what new product will emerge from this acquisition is up to Adobe’s executives.
Adobe’s challenge would be to build a bridge between Figma and Adobe so that users can get the most out of both products.
Antitrust laws would also apply, and it’ll be interesting to see how Adobe handles those issues.
Dylan Field is expected to stay in Figma and drive its business for the time being. Shantanu Narayen, the Chairman and CEO of Adobe hopes the acquisition would benefit all.
Source – https://economictimes.indiatimes.com/news/international/us/adobe-buys-figma-for-20-billion-details-here/articleshow/94229414.cms
