🧠 Food for thought

Implications, context, and why it matters.

A $20 billion acquisition may have shaped Adobe’s succession planning years ago

• Adobe called the succession a fresh search, yet people close to Adobe told CNBC in 2022 that digital media president David Wadhwani sat in the “driver’s seat” to become the next CEO 1.
• Wadhwani led Adobe’s agreed $20 billion purchase of Figma, a design and collaboration software company. Sources called it his “make-or-break opportunity” to earn the CEO role, if the deal closed 1.
• In January 2022, Adobe named Wadhwani and Anil Chakravarthy as presidents of the company. Shantanu Narayen had held that title since 2005 1.
• CNBC said the digital media business under Wadhwani brings in about three times the revenue of Chakravarthy’s unit. Some observers viewed that as a boost to Wadhwani’s standing, though sources said Narayen did not plan to leave soon 1.

The CEO’s legacy includes big bets during downturns

• Narayen’s tenure included acquisitions such as Omniture and the planned Figma deal, both pursued during economic uncertainty 1.
• Before Adobe announced its plan to buy Omniture for $1.8 billion in 2009, Narayen said he was “always trying to not waste a good crisis,” former Omniture executive John Mellor recalled 1.
• Adobe agreed to the $20 billion Figma deal in 2022 as Adobe’s stock headed toward its worst year since 2008 1.
• Narayen told employees he will step down as CEO once Adobe names a successor. He will stay as chair of the board to support the new leader, while working with lead director Frank Calderoni and the board on succession.