WEBVTT - Adobe's Figma Acquisition and the Ethereum Merge 0:00:02.279 --> 0:00:05.640 From the heart of where innovation, money and power Collie 0:00:06.400 --> 0:00:10.920 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:10.960 --> 0:00:27.760 Emily Jay. I'm Emily Check in San Francisco and this 0:00:28.000 --> 0:00:30.319 is Bloomberg Technology coming up in the next hour. It 0:00:30.400 --> 0:00:33.840 is the biggest ever takeover of a private software company. 0:00:33.880 --> 0:00:36.599 Adobe has agreed to buy the software design start up 0:00:36.640 --> 0:00:40.600 Bigma in a deal vuye at billion dollars. We're gonna 0:00:40.640 --> 0:00:44.920 hear from executives at both companies in an exclusive interview. Plus, 0:00:44.960 --> 0:00:47.760 the merge is here success. We're gonna hear from an 0:00:47.760 --> 0:00:50.920 Ethereum core developer about whether it's all going to plan 0:00:51.440 --> 0:00:55.600 and what is next? And climate tech investor in entrepreneur 0:00:55.680 --> 0:00:58.600 David Friedberg is with it us. You might also know him. 0:00:58.600 --> 0:01:00.600 That's a bestie on the all in hud will ask 0:01:00.600 --> 0:01:03.160 about his news back Today's Big Tech m and A 0:01:03.440 --> 0:01:07.440 and Elon Musk. A number of social platforms will announce 0:01:07.480 --> 0:01:11.959 new actions to combat hate crimes and racially motivated violence 0:01:12.240 --> 0:01:14.839 at a summit hosted by President Biden at the White House. 0:01:14.880 --> 0:01:19.679 Representatives from Instagram, Facebook, Twitch, YouTube, and Microsoft all planning 0:01:19.680 --> 0:01:22.720 to attend. The Company's new efforts will be unveiled alongside 0:01:22.720 --> 0:01:27.120 a package of federal initiatives to design and address hate 0:01:27.240 --> 0:01:31.759 fueled violence. Meantime, hundreds of workers at an Amazon warehouse 0:01:31.760 --> 0:01:35.640 in Coventry, England, are now striking over pay. They've been 0:01:35.680 --> 0:01:38.560 threatening strikes across the UK after a major rise in 0:01:38.640 --> 0:01:41.320 the cost of living. Any action to protest against the 0:01:41.360 --> 0:01:45.319 company's pay packages would likely take place in November, according 0:01:45.400 --> 0:01:48.760 to the Union, and the UK will open an in 0:01:48.840 --> 0:01:52.559 depth probe of Microsoft's planned sixty nine billion dollar purchase 0:01:52.600 --> 0:01:56.040 of the video GameMaker Activision. Blizzard regulators saying the deal 0:01:56.040 --> 0:01:59.600 could hamper competition and that Microsoft turned down the chance 0:01:59.640 --> 0:02:02.520 to offer are remedies to address its concerns. If the 0:02:02.560 --> 0:02:05.440 merger goes through, it will make Microsoft the world's third 0:02:05.840 --> 0:02:18.160 largest gaming company. The Brazilian agriculture company is planning to 0:02:18.240 --> 0:02:20.480 list in the US via spack with the help of 0:02:20.480 --> 0:02:24.280 one of the most prominent climate tech entrepreneurs, Lavareau, helps 0:02:24.320 --> 0:02:27.880 farmers boost production by offering a suite of key ingredients 0:02:27.919 --> 0:02:31.200 like seeds, fertilizer and more. I want to get right 0:02:31.240 --> 0:02:34.360 to David Friedburg Now, a long time founder turned investor 0:02:34.360 --> 0:02:38.120 focused on climate technology. The CEO of the Production Board 0:02:38.160 --> 0:02:40.640 which just merged with Lavreaux as well as you might 0:02:40.680 --> 0:02:43.600 know him as a co host of the All In podcast. 0:02:43.680 --> 0:02:47.200 David's so great to have you with us, big listener here, 0:02:47.440 --> 0:02:50.400 talk to us about the thesis behind this spack deal. 0:02:50.400 --> 0:02:53.280 Why spack why now? Yes, So we set up the 0:02:53.400 --> 0:02:56.760 back about a year ago specifically to do a strategic transaction, 0:02:56.880 --> 0:03:00.520 meaning we were seeking a business that operates a scale 0:03:00.600 --> 0:03:04.160 in a market that we know well food, agriculture, biomanufacturing, 0:03:04.240 --> 0:03:08.079 life sciences, and where we believe technology that exists in 0:03:08.120 --> 0:03:10.920 our portfolio of businesses could be additive and a creative 0:03:10.960 --> 0:03:14.760 to their operations. And we know AGG very well. UM 0:03:14.840 --> 0:03:19.080 came across Lavorro, which is the largest AGG retailer in Brazil, 0:03:19.360 --> 0:03:22.919 leading AGG inputs retailer in Latin America UM, and this 0:03:22.960 --> 0:03:27.760 business really has an incredible opportunity to transform how farmers 0:03:27.840 --> 0:03:31.639 farm in this market. And Latin America is the largest 0:03:31.680 --> 0:03:35.600 AG export market globally is the largest provider of calories 0:03:35.640 --> 0:03:38.400 around the world. UM and so this is a massive 0:03:38.400 --> 0:03:42.800 opportunity because farmers locally in that market don't utilize the 0:03:42.840 --> 0:03:46.280 best technology, they don't have the greatest productivity, which is 0:03:46.320 --> 0:03:49.400 yield per aker, and using agg retail, we can actually 0:03:49.440 --> 0:03:53.240 access that farmer and really transition them to new technologies 0:03:53.280 --> 0:03:57.280 like biologics, software and other tools that can massively improve 0:03:57.320 --> 0:04:01.320 their productivity. And that results in more calories, more sustainability 0:04:01.320 --> 0:04:04.120 of food production. And it's so impactful because this region 0:04:04.200 --> 0:04:08.920 is so important globally right now. So I'm curious about 0:04:09.040 --> 0:04:12.840 the decision UH to do us back in general when 0:04:12.880 --> 0:04:15.119 they've been under a lot of pressure, you know, they've 0:04:15.120 --> 0:04:18.640 almost disappeared in the last few weeks. Why do you 0:04:18.760 --> 0:04:22.560 choose that? Why did you choose that as the vehicle? Yes, 0:04:22.600 --> 0:04:25.720 so we set up a speck um last summer and 0:04:25.760 --> 0:04:27.840 so we've been UM. You know, it's the only off 0:04:27.839 --> 0:04:30.040 balance sheet of vehicle. We have the rest of our 0:04:30.120 --> 0:04:33.080 operations at the production boarder all balance sheet driven capital 0:04:33.880 --> 0:04:36.960 UM and we build an investing businesses off our balance sheet. 0:04:37.360 --> 0:04:40.040 And we did this specifically because there were public market 0:04:40.040 --> 0:04:42.800 investors that were interested in partnering with us, and we 0:04:42.839 --> 0:04:44.680 thought that this could be a really great mechanism to 0:04:44.760 --> 0:04:47.560 find a business that we could be useful to UH, 0:04:47.560 --> 0:04:49.400 and that's exactly what we're doing. So so we're actually 0:04:49.440 --> 0:04:52.160 investing a hundred million dollars off our balance sheet into 0:04:52.200 --> 0:04:55.320 the transaction, and several of our businesses are going to 0:04:55.400 --> 0:04:59.080 be partnering with lavorro UM in the future, we do 0:04:59.200 --> 0:05:02.200 hope as a way to bring new technology to that 0:05:02.279 --> 0:05:05.719 important market. And so this is a really great strategic vehicle, 0:05:05.760 --> 0:05:08.159 and the SPAC is really just a mechanism for doing 0:05:08.200 --> 0:05:10.880 that and for getting a meaningful ownership stake in a 0:05:10.920 --> 0:05:13.120 business of scale. I mean, this business, as we show 0:05:13.120 --> 0:05:16.200 in the presentation, UM should do about one point six 0:05:16.240 --> 0:05:20.800 billion top line this UH this year, and it's doing 0:05:20.839 --> 0:05:24.040 about a hundred and seventy two million proform adjusted IBATA 0:05:24.200 --> 0:05:28.040 this calendar. You're growing to two seventy seven next year UM, 0:05:28.080 --> 0:05:30.960 And so it's a business of scale, it's profitable, and 0:05:31.000 --> 0:05:33.360 I think that there's a real way to drive UM 0:05:33.440 --> 0:05:37.880 further margin improvement and further revenue growth with some of 0:05:37.880 --> 0:05:41.640 the technologies we can bring to their here talk to 0:05:41.720 --> 0:05:44.560 us about deep tech investing, which has been your thing 0:05:44.800 --> 0:05:47.400 for so long. How it's different in a bowl and 0:05:47.560 --> 0:05:51.560 bear market. You know, obviously these are companies that need funding, 0:05:51.640 --> 0:05:56.360 but it can be a harder sell when times are tough. Yeah, 0:05:56.480 --> 0:05:59.280 So it's exactly I mean, what you're seeing is exactly right. 0:05:59.320 --> 0:06:04.039 I mean, deep investing typically invests on a milestone based program. 0:06:04.080 --> 0:06:07.600 So you look at some technical breakthrough, you know, proving 0:06:07.680 --> 0:06:09.880 something works, and then you raise more capital, and then 0:06:09.880 --> 0:06:12.200 you prove the next thing works, and eventually you have 0:06:12.240 --> 0:06:14.080 a product, and eventually you can sell the product and 0:06:14.120 --> 0:06:16.800 make the product, and eventually you can scale scale into 0:06:16.839 --> 0:06:20.080 the market. And so that takes several years, and capital 0:06:20.120 --> 0:06:25.240 needs to be unlocked in milestone based um increments. In 0:06:25.279 --> 0:06:27.480 a market like this where you can buy US creuxuries 0:06:27.520 --> 0:06:30.960 and make four percent, or you know, buy a great 0:06:31.000 --> 0:06:33.560 stock that's got a five percent dividend yield and it's 0:06:33.720 --> 0:06:38.200 a growing business, it's really hard to find capital into 0:06:38.320 --> 0:06:42.200 highly speculative long range investment cycles. So then interest rate 0:06:42.279 --> 0:06:46.200 environment really challenges deep tech UM and it really challenges 0:06:46.240 --> 0:06:48.200 and I think we've particularly seen it of late in 0:06:48.200 --> 0:06:51.200 the biotech market. I don't know the latest statistic, but 0:06:51.240 --> 0:06:53.920 as of a few weeks or months ago, biotech um 0:06:54.080 --> 0:06:58.400 roughly of public issues, we're trading below cash UM, and 0:06:58.440 --> 0:07:00.240 so I think it really speaks to the channel lunge 0:07:00.279 --> 0:07:03.440 that deep tech businesses face. Now what we're doing with 0:07:03.480 --> 0:07:06.400 Lavoro as an example, and what I think happens often 0:07:06.400 --> 0:07:09.160 nowadays in biotech and will continue to happen with other 0:07:09.760 --> 0:07:12.679 UM more deep tech UM investing cycles is to partner. 0:07:13.040 --> 0:07:15.320 So you partner with the large business. You partner with 0:07:15.320 --> 0:07:18.920 the business that has scale, reach, distribution, cash flow that 0:07:18.960 --> 0:07:22.560 can really benefit if your deep tech pursuit unlock some 0:07:22.680 --> 0:07:25.600 value or some opportunity for their customer days. UM and 0:07:25.640 --> 0:07:27.560 So I think that's what we'll see more of UM 0:07:27.680 --> 0:07:31.240 likely going forward. Less of the vcs making you know, 0:07:31.320 --> 0:07:34.640 big check investments early stage hoping for something to UM 0:07:34.720 --> 0:07:36.560 you know, to hit that you'll likely need to see 0:07:36.640 --> 0:07:39.600 much more strategic partnership happen to get these things across 0:07:39.600 --> 0:07:43.800 the finish line. I'm so curious what you make of 0:07:43.840 --> 0:07:49.120 the Patagonia founder giving away his company to fight climate change. 0:07:49.120 --> 0:07:50.720 What do you think about it? Is that something more 0:07:50.760 --> 0:07:54.800 Silicon Valley founders and CEO should be doing. Yeah, he's 0:07:54.840 --> 0:07:58.120 always been an interesting guy. UM. You know, he operates 0:07:58.520 --> 0:08:00.200 his business in a different way than I'd think a 0:08:00.240 --> 0:08:04.679 traditional capitalist thinks about operating their business UM and so, 0:08:04.840 --> 0:08:08.120 you know, it doesn't seem surprising knowing the personality and 0:08:08.160 --> 0:08:10.240 the way you've talked about things. In the past and 0:08:10.280 --> 0:08:12.560 the decisions he's made. I mean, I think, uh, he 0:08:12.640 --> 0:08:16.680 kind of banned putting financial services firms logos, you know, 0:08:16.760 --> 0:08:19.560 as part of their custom embroidery programs that they were 0:08:19.600 --> 0:08:22.760 having for a while a few years ago. Um. And look, 0:08:22.800 --> 0:08:24.720 I mean, it's gonna go into these blind trusts, into 0:08:24.720 --> 0:08:27.960 these irrevocable trusts, and I'm sure that the stewards or 0:08:28.000 --> 0:08:31.080 the trustees will continue to operate this business in a 0:08:31.120 --> 0:08:34.880 smart way. I doubt that the trustees are are going 0:08:34.920 --> 0:08:36.800 to basically shred the thing and give it away. I'm 0:08:36.800 --> 0:08:38.840 sure they're going to continue to run the business, and 0:08:38.920 --> 0:08:42.400 that the dividends and the profits generated from that business 0:08:42.400 --> 0:08:45.280 over time can be used to fund um, you know, 0:08:45.480 --> 0:08:51.040 uh initiatives in climate change mitigation. Uh and um. And 0:08:51.080 --> 0:08:53.320 I think that that's a very noble way to transfer 0:08:53.360 --> 0:08:55.959 the ownership of your business rather than just give it 0:08:56.000 --> 0:08:58.480 away to a bunch of NGOs and nonprofits. Let the 0:08:58.520 --> 0:09:00.880 trustees that you know and trust break the business for 0:09:00.920 --> 0:09:03.720 you that can generate cash and value over time, and 0:09:03.720 --> 0:09:05.720 then decide where that cash and where that value should 0:09:05.720 --> 0:09:08.199 be allocated to really drive the impact in the world. 0:09:08.440 --> 0:09:11.079 So it's it's a great noble decision, and um, you 0:09:11.120 --> 0:09:12.679 know it really fits well with the way he's talked 0:09:12.720 --> 0:09:16.720 about what he's done in the past. Meantime, I got 0:09:16.840 --> 0:09:20.560 to ask you, since the Twitter Musk dispute has been 0:09:20.600 --> 0:09:23.280 a running topic on your all in pod, you interviewed 0:09:23.600 --> 0:09:26.080 Elon Musk at the All In Summit. Do you think 0:09:26.080 --> 0:09:29.840 this steal goes through? Does Musk end up buying Twitter? 0:09:29.920 --> 0:09:35.080 And if so, how does that change the social media ecosystem? Yeah? 0:09:35.120 --> 0:09:39.640 I think, Um, look, there are probably two key things 0:09:39.720 --> 0:09:42.000 at play here. The first is, you know what what 0:09:42.160 --> 0:09:44.800 ends up happening in the courts as they go through 0:09:44.840 --> 0:09:49.120 this this legal process. And um, I saw a great 0:09:49.520 --> 0:09:53.160 post by a legal analysts a few weeks ago, and 0:09:53.160 --> 0:09:55.600 I wish I could remember the person's name and reference them, 0:09:56.280 --> 0:09:59.080 but they said, you know, the Delaware um Court there, 0:09:59.120 --> 0:10:03.760 the chancery court is less likely to try and force 0:10:03.840 --> 0:10:07.480 a deal to close because then if the parties don't 0:10:07.520 --> 0:10:11.080 actually close the deal, it really damages the reputation and 0:10:11.080 --> 0:10:13.600 the integrity of the court. And that there's a case 0:10:13.640 --> 0:10:15.480 to be made that Musk would just simply say no, 0:10:15.520 --> 0:10:17.800 I'm not closing. You know, do what you want, give 0:10:17.840 --> 0:10:19.560 me a fine, of a billion dollars. I don't care. 0:10:19.800 --> 0:10:22.679 I'm not closing the merger on these terms, and so 0:10:22.760 --> 0:10:25.559 it's on this Legal analysts pointed out that it's unlikely 0:10:25.920 --> 0:10:28.040 that they'll close the deal on those that the court 0:10:28.080 --> 0:10:30.000 will try and force the deal. And I think on 0:10:30.040 --> 0:10:32.880 the other side, he saw value in the community, he 0:10:32.920 --> 0:10:34.960 saw value in the user base, he saw value in 0:10:35.000 --> 0:10:38.280 the social network, and I'm sure he still does UM. 0:10:38.360 --> 0:10:40.880 And you know, regardless of what he's identified with respect 0:10:40.920 --> 0:10:43.160 to the bot problem or the stamp problem as he 0:10:43.200 --> 0:10:45.840 calls it, that there must still be value there. So 0:10:45.920 --> 0:10:48.640 I would say that based on those two conditions, there's 0:10:48.679 --> 0:10:52.080 probably a bidass gap that maybe gets met still UM, 0:10:52.120 --> 0:10:54.440 And I would envision that there's still a motivation to 0:10:54.520 --> 0:10:57.319 do something here that is probably a function of the 0:10:57.360 --> 0:11:00.320 true size of the true network of user is on 0:11:00.360 --> 0:11:03.600 that platform, because it is such an important platform. Deep down, 0:11:03.640 --> 0:11:06.120 he probably still really wants to do something. And on 0:11:06.120 --> 0:11:07.960 the other side, the court may end up saying, hey, 0:11:08.040 --> 0:11:10.839 you know, there's um, there's some way that you guys 0:11:10.960 --> 0:11:13.319 were only going to charge a fine here, which forces 0:11:13.320 --> 0:11:16.040 Twitter back to the table to negotiate price, and maybe 0:11:16.080 --> 0:11:18.679 something happens, so you know that would be my middle 0:11:18.679 --> 0:11:20.960 of the line, kind of middle middle of the uh, 0:11:20.960 --> 0:11:24.559 the aisle here kind of decision or or um perspective 0:11:24.559 --> 0:11:26.560 and what might end up happening over the next couple 0:11:26.640 --> 0:11:31.400 of months here. Um, So we'll be listening. We'll be 0:11:31.440 --> 0:11:35.640 listening to the podcast for more commentary Dave Friedburg. Great 0:11:35.640 --> 0:11:38.160 to have you with us. Thank you so much for 0:11:38.240 --> 0:11:42.120 stopping by. We'll be right back with more Bloomberg Technology. 0:11:42.200 --> 0:11:49.280 This is Bloomberg. Let's get back to that Adobe deal 0:11:49.360 --> 0:11:52.800 to buy software design start a Figma. This deal, valued 0:11:52.840 --> 0:11:56.360 at bion dollars, is the biggest ever takeover of a 0:11:56.360 --> 0:11:59.000 private software company. I want to bring in Figma's co 0:11:59.120 --> 0:12:01.679 founder and CEO hillan Field now as well as Adobes, 0:12:01.720 --> 0:12:04.880 President of the Digital Media Business David Wadwanti for more 0:12:04.880 --> 0:12:09.600 on this historic deal. Exclusive interview Dylan kind of the 0:12:09.600 --> 0:12:12.600 Silicon Draft Valley dream coming true here. You stick with 0:12:12.640 --> 0:12:15.280 your initial idea, you develop it for a decade, you 0:12:15.320 --> 0:12:19.040 sell it for billions of dollars. There are still people 0:12:19.080 --> 0:12:22.720 ask out there asking twenty billion dollars, what do you 0:12:22.720 --> 0:12:24.920 think is the potential here? And why is Figma worth 0:12:25.000 --> 0:12:28.839 twenty billion dollars? Well, First of all, I just want 0:12:28.840 --> 0:12:30.839 to give a giant shout out and thank you to 0:12:31.080 --> 0:12:35.480 the Thigma team. I'm on this interview to day, and 0:12:36.000 --> 0:12:38.719 there's so many other people that have been involved in 0:12:38.760 --> 0:12:42.880 SUSA Thigma along the way, past figmates, current figmates, and 0:12:42.920 --> 0:12:44.840 I want to thank all of them. Of course, this 0:12:44.960 --> 0:12:48.760 is about moving forward now and how much potential there 0:12:48.880 --> 0:12:52.319 is a combined Figma Adobe combo, and we really believe 0:12:52.320 --> 0:12:56.080 there's such potential here. Whether it's looking at Figma and 0:12:56.120 --> 0:12:58.760 thinking about how we can accelerate our efforts with fig 0:12:58.880 --> 0:13:03.320 Jam through um Adobe Acrobats and their giant install base 0:13:03.480 --> 0:13:07.840 and their productivity case there, whether it's about the Stigma 0:13:08.000 --> 0:13:11.200 design platform today and how we can bring capabilities from 0:13:11.200 --> 0:13:15.760 Adobe in whether it be imaging, vector illustration, video three 0:13:15.840 --> 0:13:19.640 D or more, or it's thinking outside the box where 0:13:19.640 --> 0:13:22.920 we're currently at thinking about developers and thinking about markets 0:13:22.920 --> 0:13:24.800 were not serving and we were not playing to serve 0:13:25.080 --> 0:13:27.560 such as creatives and thinking about how do we bring 0:13:27.840 --> 0:13:31.240 the capabilities of Adobe onto the Thingama platform and make 0:13:31.280 --> 0:13:33.840 it set creatives are able to have more collaborative workfloads, 0:13:34.080 --> 0:13:36.680 make those workflodes web based and make it set creativity 0:13:36.920 --> 0:13:40.439 design and software development are more accessible to more people. 0:13:40.480 --> 0:13:43.200 Were truly excited about what can become possible there in 0:13:43.200 --> 0:13:47.880 our combination with Adobe, David, we all thought we were 0:13:47.880 --> 0:13:49.840 in a downturn, and here you are doing a twenty 0:13:49.840 --> 0:13:52.720 billion dollar deal. The stock had kind of a rough 0:13:52.840 --> 0:13:56.880 day as investors digested the number. Here, what's your response 0:13:56.920 --> 0:14:00.920 to that? Look, we we had Adobe. We're entering our 0:14:01.000 --> 0:14:04.280 forty year and we continue to be very aggressive about 0:14:04.280 --> 0:14:07.920 the opportunities that we see. If you look at the 0:14:08.000 --> 0:14:11.120 opportunity head and what Dylan and the amazing team and 0:14:11.200 --> 0:14:15.760 Figma have built. UH, they've built a company that's basically 0:14:15.760 --> 0:14:18.400 going to add two hundred million dollars of air are 0:14:18.559 --> 0:14:21.160 this year, crossing four hundred million by the end of 0:14:21.160 --> 0:14:24.960 the year, UH and UH and addressing a TAM that's 0:14:24.960 --> 0:14:27.680 sixteen and a half billion dollars. And when you put 0:14:27.680 --> 0:14:29.880 it in the context of the efficiency of the business, 0:14:29.960 --> 0:14:32.960 cash flow positive with a net dollar retention rate over 0:14:32.960 --> 0:14:38.320 a hundred uh, there are very few companies with that profile. 0:14:38.760 --> 0:14:40.720 And in the context of what we see and some 0:14:40.760 --> 0:14:43.600 of the things Dylan talked about when we look look 0:14:43.640 --> 0:14:46.920 ahead and the synergies we can do to accelerate Figma's 0:14:47.040 --> 0:14:49.640 move into that sixty and a half billion dollar CAM 0:14:50.000 --> 0:14:53.080 to accelerate what we do in terms of our core 0:14:53.120 --> 0:14:57.680 creative flagship applications we imagined with the technology running on 0:14:57.720 --> 0:15:00.600 top of the Figma platform. Uh. And when you think 0:15:00.600 --> 0:15:03.120 about it in the context of how Dylan was talking 0:15:03.120 --> 0:15:05.800 about with Big Game and Acrobat really coming in at 0:15:05.880 --> 0:15:10.960 the cross center across the intersection of um creativity and productivity, 0:15:11.200 --> 0:15:14.440 we think that the market opportunity here is massive and 0:15:14.560 --> 0:15:19.640 this was a great time to make that plate. Uh, Dylan. 0:15:19.680 --> 0:15:23.440 There was a great tweet from Ruben Harris, another startup 0:15:23.760 --> 0:15:28.320 entrepreneur out there. He compared Figma to Instagram. Well, if 0:15:28.320 --> 0:15:30.000 you think about it that way, you hear the numbers 0:15:30.040 --> 0:15:33.480 that David just rattled off, your casual positive you could 0:15:33.520 --> 0:15:36.320 have gone public as soon as the window open. Why sell? 0:15:36.520 --> 0:15:39.600 Why not try to build your own hundred fifty billion 0:15:39.640 --> 0:15:43.480 dollar company and go public on your own terms? Yeah, 0:15:43.520 --> 0:15:46.160 I mean, first of all, we're super thankful that we 0:15:46.240 --> 0:15:48.960 had the ability to control our own destiny here. But 0:15:49.120 --> 0:15:50.960 the end the day, we have to think about our community. 0:15:51.120 --> 0:15:52.600 We need to think about the impact we can have 0:15:52.720 --> 0:15:55.560 and what timeline we can have an impact on. And 0:15:55.600 --> 0:15:59.200 we believe that this accelerates the impact we can have 0:15:59.560 --> 0:16:02.200 at this Rowden's the impact we can have. And by 0:16:02.280 --> 0:16:06.960 leveraging and utilizing the expertise of Adobe, the capabilities, the 0:16:06.960 --> 0:16:10.160 technology they've built, as well as the amazing people they 0:16:10.160 --> 0:16:14.000 have UH and they've attracted over the past three decades. UM, 0:16:14.280 --> 0:16:16.600 we think that we're able to basically scale the impact 0:16:16.640 --> 0:16:20.720 we have beyond just design and move into new areas 0:16:20.880 --> 0:16:23.600 and be able to have more impact faster, And that's 0:16:23.640 --> 0:16:27.200 why we've done this deal. David, I know you were 0:16:27.240 --> 0:16:29.440 the architect of this deal, and you also sold a 0:16:29.440 --> 0:16:33.640 couple of companies, including one to Adobe in your earlier days. 0:16:33.800 --> 0:16:38.160 What kind of advice did you give Dylan through this process? 0:16:38.200 --> 0:16:41.880 You know, personal advice in the best interest of you know, 0:16:41.960 --> 0:16:44.600 Figma and his company and not necessarily the company that 0:16:44.640 --> 0:16:47.320 you work for now. Yeah, well, I think I look 0:16:47.360 --> 0:16:50.280 at it as as a shared common interest and shared 0:16:50.280 --> 0:16:52.800 objective here. So you know, Dylan and I have known 0:16:52.800 --> 0:16:55.520 each other for a few years and we started having 0:16:55.520 --> 0:16:58.760 this conversation in earnest a few months ago having gone 0:16:58.760 --> 0:17:02.160 through this process being acquired as part of Macromedia into Adobe. 0:17:02.800 --> 0:17:05.720 The things I know are if you have shared purpose, 0:17:05.880 --> 0:17:08.680 if you have a shared passion UH, and you have 0:17:08.960 --> 0:17:10.720 a clarity in terms of how you're going to actually 0:17:10.720 --> 0:17:13.840 operate and go after the market. UH, great things will 0:17:13.880 --> 0:17:16.000 happen because there's so much that we have in common 0:17:16.000 --> 0:17:17.840 in terms of how what we want to approach the market. 0:17:18.160 --> 0:17:20.040 And Dylan and I have been very clear in terms 0:17:20.040 --> 0:17:22.080 of how we're planning to run this. Dylan will remain 0:17:22.440 --> 0:17:26.080 CEO of Figma and UH, and he and I will 0:17:26.119 --> 0:17:28.800 be working very closely to make sure that the decisions 0:17:28.800 --> 0:17:31.000 that he makes with the autonomy that he needs to 0:17:31.080 --> 0:17:34.400 keep the things that are special about Figma special UH, 0:17:34.480 --> 0:17:37.560 combined with the things that we can do surgically to 0:17:37.600 --> 0:17:41.920 accelerate the business, accelerate our technology vision, and accelerate move 0:17:41.960 --> 0:17:44.880 into new markets. That's really the foundation and the big 0:17:44.920 --> 0:17:46.920 the most important thing, and we talked a lot about 0:17:46.920 --> 0:17:49.639 this of the process is shared vision and trust and 0:17:49.640 --> 0:17:51.879 and I certainly have a tremendous amount of respect for 0:17:51.920 --> 0:17:53.919 what Dylan and the team has done. And I think 0:17:54.000 --> 0:17:56.119 he's he knows me well enough that he knows that 0:17:56.200 --> 0:17:58.080 I'm a person of my word and we're gonna do 0:17:58.160 --> 0:18:03.040 great things together. It's mutual and it's her years prior 0:18:03.080 --> 0:18:05.520 as well, all right, fig A co founder and CEO 0:18:05.600 --> 0:18:09.080 Dylan Field, along with Adobes President of the digital media 0:18:09.119 --> 0:18:11.840 business David Wadwanti, thank you both for sharing both sides 0:18:11.880 --> 0:18:25.919 of it. Crypto's most important commercial highway, Ethereum has just 0:18:26.359 --> 0:18:30.360 been repaved. The blockchain network completed the crypto world's biggest 0:18:30.359 --> 0:18:33.639 and most ambitious software upgrade to date. This according to 0:18:33.720 --> 0:18:36.359 its co founder of Italic, Peter and The upgrade is 0:18:36.359 --> 0:18:38.919 called the Merge and appears to be a sell the 0:18:38.920 --> 0:18:42.360 news event. Bloomer Boss has been covering for this and Shanale, 0:18:42.440 --> 0:18:44.960 have you been up all night long? Did this thing 0:18:44.960 --> 0:18:47.800 that we wake up at two am to see what 0:18:47.920 --> 0:18:51.360 had happened? Yes, Emily. And while it was successful, remember 0:18:51.400 --> 0:18:53.960 and also one of the biggest upgrades we've ever seen 0:18:54.040 --> 0:18:56.919 in the cryptocurrency industry, it is still the beginning of 0:18:56.920 --> 0:18:59.680 many changes for Etheroryum ahead to get to those ultimate 0:18:59.680 --> 0:19:02.280 goals that Atherorum is looking for. So what is really 0:19:02.400 --> 0:19:05.320 changing now? We are moving to this proof of steak model. 0:19:05.640 --> 0:19:08.280 We are moving over from that reliance on miners to 0:19:08.440 --> 0:19:11.359 stakers who are used to validate the chain and really 0:19:11.359 --> 0:19:14.879 start to expand other things that Ethereum is really looking 0:19:14.920 --> 0:19:18.600 to do, which has become more scalable, improve transaction fees 0:19:18.680 --> 0:19:20.879 and gas fees. But you know that's not going to 0:19:21.000 --> 0:19:23.840 happen right away. There are things that you've seen the 0:19:23.920 --> 0:19:26.560 talk Twitter and talk about today on Twitter that will 0:19:26.560 --> 0:19:28.400 start to get you closer to that, but there's still 0:19:28.400 --> 0:19:31.919 some concerns right now as we look at the merge 0:19:31.920 --> 0:19:34.440 and how the next couple of days and weeks work out. 0:19:34.840 --> 0:19:38.560 What are those concerns. Those include scammers potentially appearing and 0:19:38.680 --> 0:19:42.440 creating forks that look a lot like the Ethereum chain 0:19:42.640 --> 0:19:45.800 as it continues through the merge, and you're also worried 0:19:45.840 --> 0:19:48.440 about the impacts on the layer two's that are tied 0:19:48.480 --> 0:19:52.080 to Ethereum. You're also worried about any unanticipated glitches that 0:19:52.119 --> 0:19:54.679 are not just tied to this particular merge, but the 0:19:54.720 --> 0:19:57.680 future upgrades, because those are the ones that are going 0:19:57.720 --> 0:19:59.720 to do the things that we want to see from 0:19:59.720 --> 0:20:03.400 a theory um, which is improved those transaction fees and speeds. 0:20:03.640 --> 0:20:05.520 So when we take a look here to your point, 0:20:05.520 --> 0:20:08.159 you're seeing some pressure on Ethereum, but remember this is 0:20:08.200 --> 0:20:12.000 not really all about the merge. This is also tied 0:20:12.119 --> 0:20:14.760 to a lot of other issues that are happening in 0:20:14.760 --> 0:20:17.720 the macro environment. The merge. While there were a lot 0:20:17.720 --> 0:20:20.520 of people buying it leading into this news, there was 0:20:20.560 --> 0:20:23.480 a lot of education that went around the merge in 0:20:23.600 --> 0:20:26.280 terms of, you know, the future for ethereum and what 0:20:26.359 --> 0:20:28.840 it looks like as people really start to take to 0:20:28.880 --> 0:20:32.600 the staking model and really bake in the place of ethereum, 0:20:32.640 --> 0:20:34.879 not just in the crypto community, but while we have 0:20:34.960 --> 0:20:38.679 all these other global issues going on that our headwinds emily, 0:20:39.080 --> 0:20:42.760 including a hiking interest rate cycle around the world that 0:20:42.840 --> 0:20:47.320 can pressure on crypto assets including ethereum. So a lot 0:20:47.400 --> 0:20:50.960 still for theoryum ahead, but again the next few weeks 0:20:50.960 --> 0:20:53.280 will be pretty critical as people bake in this news. 0:20:54.960 --> 0:20:56.760 Alright now, I hang on, I want to bring in 0:20:56.880 --> 0:21:02.400 Preston van Loon, now ethereum core developer and co founder 0:21:02.600 --> 0:21:06.240 of Prismatic Labs. Preston, thank you so much for joining us. 0:21:06.720 --> 0:21:10.359 Love to get your technical perspective here. It seems like 0:21:10.440 --> 0:21:13.240 it's been a success so far. When will we know 0:21:13.359 --> 0:21:17.960 for sure? M Well, the merch event definitely was a success. 0:21:18.240 --> 0:21:22.000 Um you know, the emergence ethereums uh switch from proof 0:21:22.000 --> 0:21:24.919 of work to proof of stake is literally emerging. The 0:21:24.960 --> 0:21:28.800 proof of state blockchain they launched almost two years ago 0:21:29.280 --> 0:21:34.280 with the Ethereum maininet. We've seen that's had consistent block production, 0:21:34.640 --> 0:21:39.080 consistent finality. So far, everything is a success. I think 0:21:39.080 --> 0:21:42.199 what we'll see over time is do the metrics hold up. 0:21:42.200 --> 0:21:46.639 Do we continually see nearly participation. Do we see consistent 0:21:46.680 --> 0:21:50.800 block finalization and a healthy network in the coming weeks 0:21:50.800 --> 0:21:57.920 and months? You know, looking out longer term, what are 0:21:57.960 --> 0:22:01.240 you going to be watching for? Are there any potential 0:22:01.960 --> 0:22:06.000 um red flags that you are are going to be 0:22:06.000 --> 0:22:11.200 looking out for? Yeah, great question. Um. You know, with 0:22:12.000 --> 0:22:17.080 these kind of upgrades, it's really important that Darium stays online. Right. 0:22:17.200 --> 0:22:21.879 It's a really hard thing to do. Um. But you 0:22:21.920 --> 0:22:25.840 know with these upgrades there are also so complex, right, 0:22:25.880 --> 0:22:27.440