You should let Figma buy Adobe, with Adobe’s Money
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So the latest headline Adobe purchasing figigma for $ 20 billion, half cash, half stock, double their valuation 50 times, they're reported 400 million and annual revenue expensive, even if you value their employees at millions and millions of dollars of them. What is your my thoughts? This is as somebody who works at Adobe who has no insight in the video, no insight as to why Adobe would make purchase Fagner no idea. This was happening before the news was announced, but at the same time, are you ask designer who would never use Adobe XD on a daily basis? He'S kind of my thoughts? If you think about Figman versus adobe is products, adobe builds a lot of native software runs across platforms, but they're maintaining the suite of native software, which is dominated pretty much every vertical. Since the 1990s tell me about raster graphics with Photoshop photo editing in Lightroom him for a long time. Ux design happened in illustrator and Photoshop before that, but these were never good tools for you ask designers and so fireworks came along and US designers loved that so after Adobe acquired Macromedia, they killed that off and most US designers went back to Photoshop or illustrator. I want to see you ask designers, nobody was calling themselves US designer back. Then everybody was calling them selves. There'S a lot, there's a lot of blurring the lines between what we would call you a designer and a UX designer today or a product designer it's. It was kind of a more holistic thing and we had a lot of ski, more Fick design happening and up until the mid-2000s late, 2000, no mid 2010s. Really I am so having a tool in Photoshop or illustrator, with the power to create highly detailed interface designs. Also be the tool that you use to create UX designs may be supplemented with wire framing tool like ask her about samekh like this wasn't a horrible idea, but there is always a desire for something faster, nimbler and lower Fidelity than Photoshop in Australia and schedule is A revival of that tool followed by figment, which became you know the cross platform, more collaborative version of that right and adobes, never clog that segment of the market back, whereas sigma basically dominates it right now. So if you look at any Wall Street analysts, I've read half a dozen takes and they're all exactly the same. If you look at the numbers, there is no way $ 20 billion makes sense. I don't be over paid by at least 100 %, but think about why they overpaid, because if, if you wait a couple years and let this become a generic late start up, lifecycle market acquisition, somebody like Microsoft or Google, buys fig my right, and this becomes a Generic tool, the team - you know they they they make a nice home for the team to continue working on their tool and make surface level integrations and the other Microsoft products, and they guarantee that you know. There'S a Windows base, design tool that competes against Max dominance. In the design industry like there's a path for that, it's just not very exciting, there's a more exciting path for Adobe to reinvent itself and rebrand itself, away from kind of the negative image it's developed through its predatory subscription model. No, it's not an opinion like that's, not I'm sure you know it's not a popular thing to say as an employee, but charging a early termination fee on a two-year contract for a piece of software is just predatory. There'S no other word for it and if you talk to designers, you never hear them complaining about any aspect of Photoshop or Lightroom or illustrator that they don't like in the software right. They very rarely complain, there's a lot to complain about, but that's not the complaint. You hear that makes them not want to use adobe products, it's the pricing model, but anyway, back to the more interesting path that adobe can take surface level. People might see. This is an acquisition where adobe just requires Figgemeier. Now they dominate every vertical of design. Software across all platforms - and they have you - know - restore of them selves to where the company was in the mid 2000s, and that alone makes it worth $ 20 billion. Specially considering what is adobe going to spend the additional money on anyway, stock buybacks, developing new products like they're, not cash-strapped they're more in a situation like Apple is today or they don't know what to spend the money on no you're more interesting is one thing. That'S been under reported, I think, is the release of Photoshop Web and Adobe Xpress. This is a trend that I'm kind of seeing from inside the company, but it's on an unofficial. I mean you see the trend from outside the company too. It'S there's no secret around us, but if you think about a company that wants to shift from multi platform, desktop software gradually into web-based collaborative versions of that software, think about the impact of hiring the team that built the most success for cross platform web-based design tool. In the industry and then filtering some of those people into the teams working on the web version of Photoshop and illustrator and adobe Xpress and filtering them throughout the company and learning that culture intermingle with adobes culture and reinvigorate the company. I'M not saying this is what's gon na happen. I don't even know if management teams intend to do this, but you could really re-birth adobe as a totally new company out of the figment acquisition. If you did it right and then I get to be a little bit like an inverse of the Lockheed Martin acquisition fire Boeing, where people joked Lockheed Martin bought Boeing with a with Boeings money. If you let figment by adobe with adobes money, the resulting company, if you get the culture right, adds more than 20 billion of value to Adobe.