Chapter
Adobe's decision to make Figma competitor free puts pressure on business model
11:10 - 17:01 (05:51)
Adobe's decision to offer a competitor to Figma for free disrupted their business model and has forced them to find a way to replace the revenue. This change is expected to result in a temporary loss of revenue for Adobe.
Clips
Adobe's acquisition of Figma may not be profitable for the next three years as it requires Figma to drop almost $1.5 billion of free cash flow into the business, coupled with rising interest rates that will negatively impact Adobe's profits.
11:10 - 14:33 (03:22)
Adobe
Summary
Adobe's acquisition of Figma may not be profitable for the next three years as it requires Figma to drop almost $1.5 billion of free cash flow into the business, coupled with rising interest rates that will negatively impact Adobe's profits.
ChapterAdobe's decision to make Figma competitor free puts pressure on business model
EpisodeE96: Adobe acquires Figma for $20B, TPB SPAC, FedEx CEO's recession warning, macro picture & more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The disruption of Adobe's business model couldn't be afforded in the public market given the expectation from institutional investors to receive a stable annual free cash flow; this put the company in a difficult position in handling market maturity, scale, and cash flow.
14:33 - 17:01 (02:28)
Adobe
Summary
The disruption of Adobe's business model couldn't be afforded in the public market given the expectation from institutional investors to receive a stable annual free cash flow; this put the company in a difficult position in handling market maturity, scale, and cash flow.