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We are welcoming of your individual perspective on how one might work out the valuation or any comment you would like to add to the discussion. To spoil a takeaway from the latter part of this post: we do not have an explanation for the valuation level.
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Permit us a few observations and at least one rant. We are at a loss to even cite a historical analog for such a deal (IBM buying Aspera? AWS buying Elemental?). A more than 15x cash-on-cash return on the aggregate amount of funding raised by Frame.io. It is remarkable for a business to achieve an all-cash $1 billion+ cash exit shortly after celebrating the sixth anniversary of its launch – and within the post-production technology sector. The deal is expected to close during Adobe’s fourth quarter (which begins in September).
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Last Thursday (8/19) Adobe announced its intention to acquire Frame.io, a video review and collaboration platform, in a $1,275,000,000.00 all-cash transaction.
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