Investors have argued that Adobe overpaid for a company that was valued at about $10-billion in a private fundraising a little over a year ago.
Thursday to acquire cloud-based designer platform Figma for US$20-billion, sparking investor concerns about the rich price tag that led to a drop of more than $30-billion in the market value of the Photoshop maker.
Adobe CEO Shantanu Narayen hailed Figma’s business as “the future of work” and said there were “tremendous opportunities” in combining it with his company’s offerings, such as document reader Acrobat and online whiteboard Figjam.The $20-billion exit marked a major win for Figma’s venture capital backers, including Index Ventures, Greylock Partners and Kleiner Perkins.
Adobe investors were less impressed, driving down the company’s stock by 17% on Thursday. Many of them said they understood the rationale around the strategy, but argued Adobe overpaid for a company that was valued at about $10-billion in a private fundraising round a little over a year ago.David Wagner, portfolio manager and equity analyst at Aptus Capital Advisors, which owns a 1.
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