Best of Bloomberg Intelligence (09/15/2022)

The transcript discusses Adobe's acquisition of Figma for $20 billion, highlighting it as one of the largest deals for a private software company. The financial analysis reveals a high valuation multiple, raising questions about market trends and Adobe's strategic direction. Despite Adobe's slowing growth and earnings challenges, the acquisition is seen as a strategic move to enhance its Creative Cloud offerings. The discussion also touches on Adobe's need to adapt to market changes and the potential long-term benefits of the acquisition.

What is the significance of Adobe's acquisition of Figma?

• It is the largest acquisition in Adobe's history.

• It marks Adobe's entry into the hardware market.

• It is one of the biggest deals for a private software company.

• It is the first time Adobe has acquired a design tool.

Why is Figma considered strategically important for Adobe?

• It enhances Adobe's hardware capabilities.

• It strengthens Adobe's Creative Cloud offerings.

• It allows Adobe to enter the gaming industry.

• It provides Adobe with a new advertising platform.

What has been the trend in Adobe's growth rate over the past five to seven years?

• Consistent decline in growth rate.

• Growth rate between 15% and 20% with margin expansion.

• Growth rate exceeding 30% annually.

• No significant growth observed.

What is one of the reasons Adobe needs to make acquisitions?

• To exit the software market.

• To diversify into the food industry.

• To maintain its growth rate as product lines mature.

• To reduce its workforce.

What is the expected impact of the Figma acquisition on Adobe's future?

• Immediate increase in Adobe's revenue.

• Reduction in Adobe's product offerings.

• Shift in Adobe's focus to hardware development.

• Potential long-term benefits for creative professionals.