An announcement was made recently by Adobe to buy Figma for $20 billion. The value of this deal is 20 billion dollars. 10 billion in cash and 10 in stocks. Figma was the biggest competitor to Adobe which will now be part of Adobe itself. It is claimed that Figma will continue autonomously, and competition is no more.
Why is Adobe doing this?
Adobe is a leading giant in the creativity and design market. Adobe creative cloud offers applications for almost every kind of design project. Having easy and effective tools made Adobe the first love of almost every designer. There seems to be no competition, some think that Figma was giving some competition to Adobe. For those who don’t know, Figma is an online creative designing platform preferred by millions of users worldwide.
There is a famous saying “if you want to remove the competition, remove the competitor”. Adobe takes its competitors in order to remove the competition and maintain its position in the market. Removing the competition is the reason that made Adobe buy Figma for $20 billion.
Is Figma worth 20 billion?
Figma is an online creative designing platform preferred and trusted by millions of designers worldwide. This huge fanbase made Figma the second most popular design platform on the entire globe. How much was Figma sold for? Adobe announced buying the entire Figma for 20 billion dollars which is recorded as the most expensive acquisition by Adobe recorded in the entire history of the company.
As shown by the above image Adobe is actually fond of buying companies. In 2005 Adobe acquired Macromedia for about 3.32 billion dollars. In 2009 they acquired the company now known as Adobe Analytics 1.6 billion dollars approx. The second biggest Acquisition made by Adobe was in 2018 when Adobe bought Marketo Inc for four thousand seven hundred and fifty million dollars (4.750 billion dollars). Adobe Figma deal could be Adobe’s largest acquisition ever which is worth 10 billion dollars in cash and approximately 10 billion dollars worth of stock, setting the total value of the deal to 20 billion dollars.
Millions of designers around the world are using Figma nowadays. They are all actually worried about the future of Figma. Both companies have announced that Figma will continue its creativity autonomously with much interference from Adobe. That there will be no price difference in Figma subscription even after the Acquisition.