Adobe to Buy Online Design Startup Figma 🛒
Scott D. Clary | Daily Business, Tech & Finance Newsletter
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Here’s whats happening:
- Adobe to buy online design startup Figma
- Starlink arrives in Antarctica
- FedEx withdraws full-year guidance and will cut costs
- Polywork secures $28 million in funding
- Environmental Groups pressure Bitcoin community over proof of work network
Adobe to Buy Online Design Startup Figma 🛒
Adobe Inc. is on the verge of closing a deal to acquire Figma, marking the biggest ever takeover of a private software company.
- Adobe will buy Figma in a deal valued at about $20 billion.
- The deal announced by Adobe will be a mix of half cash and half stock.
- Once the deal closes, Figma co-founder and CEO Dylan Field will continue to run the company; however, he will report to David Wadhwani, president of Adobe’s digital media business.
Founded in 2016, Figma is a collaborative web application for interface design with additional offline features enabled by desktop applications for macOS and Windows.
The company’s mission is to help teams collaborate visually and make design accessible to all.
Why does this deal matter?
Jointly, Adobe and Figma will reimagine the future of creativity & productivity and also accelerate creativity on the web.
In addition, the combined entity will have a massive, fast-growing market opportunity and capabilities to drive significant value for customers, shareholders, and the industry.
Starlink 🛰 Arrives in Antarctica
SpaceX’s Starlink satellite internet service has finally arrived at McMurdo Station on the coast of Antarctica.
The news was announced in a tweet by the National Science Foundation, which funds the U.S. Antarctic Program at McMurdo and other places.
SpaceX noted, saying, “In such a remote location like Antarctica, this capability is enabled by Starlink’s space laser network.”
What does this mean?
Elon Musk’s SpaceX has long touted Starlink’s satellite internet potential as a world connector, letting people in rural areas and other underserved communities access high-speed internet.
The availability of SpaceX’s internet service in one of the most remote communities on Earth — Antarctica means that Starklink’s satellite internet service is now available — at least potentially — on all seven continents.
This is important because up until now, the polar region has received internet via multiple satellite systems, none at high speed.
Adding a Starlink terminal at McMurdo, which is a major hub for climate science and geology, among other things, should at least partly ease those woes.
FedEx Withdraws Full-Year Guidance And Will Cut Costs ✂️
American multinational conglomerate FedEx withdrew its full-year guidance and announced significant cost-cutting measures, including office closures.
- FedEx will close 90 offices, including five corporate locations.
- As part of cost-cutting measures, the company will also defer hiring efforts, reduce flights, and cancel projects.
Here’s how the company did:
- Earnings per share: $3.44, adjusted vs. $5.14 expected
- Revenue: $23.2 billion vs. $23.59 billion expected
The company’s poor performance in the first-quarter ending August 31 led it to withdraw its full-year forecast that was set in June.
FedEx blamed its poor performance on weaknesses in Asia as well as service issues in Europe.
Even though these factors reduced shipping volume, the company claimed that operational costs were still high.
FedEx reduced its forecast for capital expenditure for the year by $500 million to $6.3 billion.
For its fiscal Q2, FedEx expects adjusted earnings per share of at least $2.75 on revenue of between $23.5 billion to $24 billion.
Professional Network Startup Secures $28 Million in Funding 💰
Polywork, a professional network startup, has raised $28 million in its Series B funding round.
The round was co-led by Nat Friedman (former GitHub CEO) and Caffeinated Capital. Existing and new investors Andreessen Horowitz, Daniel Gross, Baron Davis, Bungalow Capital, Elad Gil, Fidji Simo, and Maverick Carter also participated in the round.
Other backers of the company include the founders of Stripe, Lyft, Instacart, Lattice, Minted, and Divvy Homes.
What will Polywork do with the funding?
Polywork will use the fresh capital to further address the needs of the new generation focused on empowering professionals to collaborate.
In addition, Polywork will continue to invest in building out the platform and expanding its team.
Founded in 2020, Polywork is the professional network for multi-hyphenates — those defying the traditional 9–5 by pursuing multiple passions.
The startup is on a mission to transform online professional networking by giving professionals a space to express and celebrate their full identities and to collaborate with other professionals who share their interests.
Environmental Groups Pressure Bitcoin Community Over Proof of Work Network 🚨
Climate groups have launched a new campaign targeting Bitcoin’s energy-intensive proof-of-work network.
The activists want Bitcoin to follow Ethereum into switching from Proof-of-Work (PoW) to Proof-of-Stake (PoS) consensus mechanism.
Transitioning the Ethereum blockchain from PoW to PoS has reduced its energy usage by more than 99%, and hence several climate activists have called for Bitcoin to follow suit.
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