Last week was eventful and, based on one’s stock portfolio, painful. Over the years that I worked at Adobe, I bought into the ADBE stock through labor (RSU) and money (ESPP). A big portion of my net worth is held in ADBE stock, and that stock sunk 20% on a single day — the day they announced Adobe would acquire Figma for $20 billion.
This newsletter series started on Aug 2nd, 2021, days after I left my position at the Adobe. Prior to founding Typogram, I spent a year and a half working on Adobe XD and five years on another Adobe acquisition Typekit (now called Adobe Fonts). I felt the blow on multiple levels. One that I was once devoted to Adobe XD, spending days and nights trying to win the battle with Figma, but now the acquisition announces Adobe XD’s premature defeat. One that I mentioned earlier — the blow in my wallet.
Let’s begin with the wallet blow. Not every investor of ADBE stock is like me, who held a grudge because they worked on the internal competitor product. Why do other investors hate the acquisition, as shown by the stock price plunge? The simple answer is that the $20 billion price tag is too expensive.