Adobe bets $20B on future acquisition of Figma in collaboration • TechCrunch

Before announcing Adobe’s biggest deal in 2018 was the $4.75 billion purchase of Marketo, with FIMA on Thursday aiming to buy it for $20 billion.

Why would he go so far out of his pricing comfort zone and pay twice as much as FIMA’s latest valuation? The simple answer is to drive your competitor out of the market. Yes, Adobe XD is the same product, but there may be more to this deal than simply playing defense.

It could be that – like IBM buying Red Hat for $34 billion in 2018 or Salesforce buying Slack for $28 billion in 2020 – Adobe’s executive team saw a company that could fundamentally change their organization.

For IBM, Red Hat’s acquisition was all about hybrid cloud. For Salesforce and Slack, it was the digital workplace, but both saw a shift coming in their markets and made a big offer for a key company to get ahead of it. Both kept those departments in place with the existing CEO (more on that).

Adobe may have seen the Fisma deal as an organizational shift as it sees a key shift in its creative market, which focuses on creating assets like Photoshop and Illustrator. .

The former is where Adobe built most of its business. The latter is represented by Figma, a start-up of visionary creators who want to change the way people think about design in a digital context, a change so important that the old guard company was willing to spend a fortune to catch up with the young and bring the two together. Methods of thinking together.

We spoke to people from the companies involved, Figma investors and industry analysts to find out why this deal fell through. The bottom line was that there were many reasons, but perhaps the best one was that Figma and Adobe thought they would be better together.

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