[HN Gopher] After Figma's $20B windfall evaporated, it's picking...
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       After Figma's $20B windfall evaporated, it's picking up the pieces
        
       Author : mooreds
       Score  : 19 points
       Date   : 2024-02-08 19:39 UTC (3 hours ago)
        
 (HTM) web link (www.nytimes.com)
 (TXT) w3m dump (www.nytimes.com)
        
       | chrisjj wrote:
       | https://archive.ph/2l0uK
        
       | sagz wrote:
       | tl;dr: The article reports on Figma's challenges after a $20
       | billion deal with Adobe fell through due to regulatory scrutiny.
       | Figma had to halve its internal valuation to $10 billion,
       | affecting employee morale and leading to severance offers for
       | those wishing to leave. The situation illustrates broader
       | regulatory impacts on tech industry mergers, with similar actions
       | affecting other companies and reshaping expectations around
       | acquisitions and employee compensation.
        
         | itake wrote:
         | This is the story of most SPAC startups in the last 3 years.
        
       | COGlory wrote:
       | >Figma's employees, called Figmates
       | 
       | This may take the cake as the worst one yet. I suppose they
       | _could_ have gone with Figments.
        
         | bombcar wrote:
         | Figments would at least be amusing in a self-deprecating sort
         | of way.
        
         | hanniabu wrote:
         | Or just Figs
        
         | itake wrote:
         | I work from Grab. We are "Grabbers"...
         | 
         | Our annual sexual harassment train goes like this:
         | 
         | "Hi Grabbers, Please remember not to grab"
        
           | jpgvm wrote:
           | ngl. that is a pretty good line.
           | 
           | I'm a big Grab user as a resident of Thailand so I've always
           | thought about Grab/Line or Gojek but the compensation has
           | never lined up with what I can get elsewhere.
           | 
           | How is working at Grab and are you based in SEA or elsewhere?
           | 
           | Disclaimer: former Uber/Postmates employee
        
         | tomjakubowski wrote:
         | Fig'mewtons
        
         | Invictus0 wrote:
         | FigmaBalls
        
         | Invictus0 wrote:
         | Figmartians
        
         | Comma2976 wrote:
         | Figgots.
        
         | Invictus0 wrote:
         | Figmaggots
        
         | layer8 wrote:
         | Figmalions
        
         | dang wrote:
         | I agree those corporate constructs are awful, but things like
         | this are why HN has this guideline:
         | 
         | " _Please don 't pick the most provocative thing in an article
         | or post to complain about in the thread. Find something
         | interesting to respond to instead._"
         | 
         | https://news.ycombinator.com/newsguidelines.html
        
       | vert1020 wrote:
       | Misleading title. They got $1B in breakup fee from Adobe, they
       | will be fine.
        
       | thebradbain wrote:
       | Yes, this sucks for employees in the short term who thought their
       | equity was potentially worth 2x what it is (and more importantly,
       | liquid!). But also, if their numbers are good enough to plausibly
       | command that price, it's probably better for everyone, employees
       | included in the long run, to go public? And not via SPAC, but via
       | a real IPO.
       | 
       | Looking back, I think this ZIRP phenomenon of PE and VC was
       | unhealthy (remember crypto??), unrealistic, and ultimately only
       | benefitted a few founders, some employees, and mostly VC firms
       | making paper gains by marking up SoftBank-esque valuations that
       | no one actually believed.
       | 
       | We're forgetting that all of FAANG IPOd when they too were much
       | less than $20 billion. Maybe it's time for the next generation of
       | software companies to take control of their own destiny rather
       | than wait for a golden parachute to buy them out.
        
       | _benj wrote:
       | If I put myself in the position of an employee, yeah, that the
       | deal didn't went through does sucks, but at the same time, am I
       | supposed to feel sorry for Adobe and their world domination goals
       | being thwarted by regulatory agencies? it seems to me that if big
       | tech had their way, they would follow the old MS path of buy and
       | kill and just be the sole providers of whatever product they are
       | selling.
       | 
       | Monopoly is good for business but it sucks for customers!
        
       | DHPersonal wrote:
       | I feel bad that the employees didn't get to go from a cool
       | startup to a huge payday, but they still get to work at the cool
       | startup and us customers don't have to deal with Adobe's awful
       | behavior in our UI design program.
        
       | benatkin wrote:
       | The merger with Adobe may be gone, but the rent-seeking is still
       | there. The plans are generous - if you work all by yourself. If
       | you get hooked on it and want to work with one other person, it
       | jumps to $24/mo ($480/yr) for the two of you if you need more
       | than 3 boards.
        
         | solardev wrote:
         | That's like, what, half an hour's wages per person per month?
         | Doesn't seem unfair.
        
         | durumu wrote:
         | I don't really think that qualifies as rent-seeking... it's
         | just that they have a good product that is expensive. You are
         | free to use a product that is cheaper and worse.
        
       | preommr wrote:
       | I have a very strong feeling that it's more likely Figma is going
       | to be the next sketch than it'll be the next adobe.
        
       | xnx wrote:
       | It's a bit of a crazy point we're at that a tool for mocking up
       | digital interfaces would be so valuable. Creating blueprints for
       | buildings is useful because construction is slow and expensive.
       | It embarrassing that we can't make a mockup interface in our GUI
       | editors as fast as we can make them in a separate tool.
        
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       (page generated 2024-02-08 23:01 UTC)