Adobe announced yesterday that it is buying design platform and rival Figma for $20 billion

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Dylan Field @zoink

Adobe Inc. (ADBE) 299.5 -9.630005(-3.1151958%)  announced yesterday that it is buying design platform and rival Figma for $20 billion. It’s a very impressive exit for Figma and its early investors considering that the majority of IT businesses enter their failure phase this year. In its by far greatest acquisition, Adobe is paying a staggering 50 times the company’s annual subscription income.

Figma is anticipated to generate $400+ million in revenue this year and was valued at $10 billion in 2021 following its most recent funding round. The 10-year-old business has experienced tremendous growth and is now a favorite among Big Tech companies like Google, Oracle, and Salesforce’s designers, product teams, and engineers.

The deal made sense as Adobe’s long-standing alliance with Bill Gates’ was under danger from Figma’s growing ties with Microsoft.

In order to align with its quarterly profits, Adobe verified the announcement.

The business reported third-quarter earnings of $4.43 billion in revenues and $3.40 in non-GAAP earnings per share, which were both above and below experts’ predictions. Although the company provided a cautious outlook for the upcoming quarter, with revenues projected to be $4.52 billion and EPS projected to be $3.50, it acknowledged that it might need to borrow money to finance this transaction. It cited “the overall macroeconomic environment” and “FX headwinds” as reasons for this. One indication of how Adobe probably believed the announcement of combining and eliminating a rival could give it a lift is how its stock has traded down close to 10% pre-market open on the announcement.

Figma CEO made a statement on their website. “While this is not the end of the story, it is the closing of a chapter, and I want to thank all the Figmates (past and present), community members, and customers who helped us reach this milestone. You bet on us before there was a reason to — before cursors flying across the screen was normal, before design was at the center of the product process and before we knew what we were doing. Milestones are mirrors through which we can see the hard work of many and I am so grateful. I understand this is a big change, especially for a platform you rely on every day. So I want to elaborate more on our plans for how this acquisition will work operationally and why I believe this is a partnership that will ultimately benefit you and the Figma platform.”

 

In another Celebrity News update Fashion House ParisJewelry.com has started manufacturing new custom line of celebrity jewelry products.

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