Weird article.
Point 1 is exactly correct: This is a purely defensive play designed to protect their existing market cap. Figma and Canva put the once ironclad Adobe cashflows at risk, simple as. In that sense, paying 20 billion to protect and enhance your market cap is a no brainer.
Point 2 and 3 however I disagree with heavily. Figma purchase is exactly about Adobe's failures to build a good competitor, its not like Figma is this new arrival, people were raving about it for quite some time already and Adobe had a lot of time to respond. This purchase shows that Adobe's cashflows are nowhere near as secure as they were thought to be, hence the rerating on the stock is not a simple blip.
And that Lina Khan should stay off this? Give me a break, this is exactly what she should be targeting if she is serious about antitrust. Adobe + Figma bundle destroys this market for anything not named Canva for at least 5-6 years. The idea that FTC should reward innovation by allowing monopolistic/oligopolistic buyouts for big prices is how Whatsapp and Instagram ended up with Facebook.
Point 2 and 3 however I disagree with heavily. Figma purchase is exactly about Adobe's failures to build a good competitor, its not like Figma is this new arrival, people were raving about it for quite some time already and Adobe had a lot of time to respond. This purchase shows that Adobe's cashflows are nowhere near as secure as they were thought to be, hence the rerating on the stock is not a simple blip.
And that Lina Khan should stay off this? Give me a break, this is exactly what she should be targeting if she is serious about antitrust. Adobe + Figma bundle destroys this market for anything not named Canva for at least 5-6 years. The idea that FTC should reward innovation by allowing monopolistic/oligopolistic buyouts for big prices is how Whatsapp and Instagram ended up with Facebook.