Adobe Inks Deal to Buy Frame.io for $1.3 Billion
Key Points:
- Adobe will buy Frame.io for $1.3 billion. With this deal, Adobe is set to expand its creative cloud unit.
- Frame.io is a popular video collaboration platform that is extensively used by brands and media agencies
- Frame.io has multiple high profile clients such as Vice, Turner, and Netflix
Adobe Inc. announced that it is set to buy Frame.io, a popular video collaboration platform in a $1.3 billion cash deal. This is Adobe’s biggest deal since it acquired Workfront for around $1.5 billion in 2020.
Frame.io will expand the capabilities of Adobe’s creative cloud that is host to software such as Illustrator and Adobe Photoshop.
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Why did Adobe Acquire Frame.io?
According to Scott Belsky, Chief Product Officer, Adobe, the company wanted to acquire Frame.io after it figured out that its customers are using the platform with Adobe’s suite of products.
Initially, Adobe was considering developing a native video editing and collaboration software. However, it decided to acquire Frame.io instead.
Frame.io’s Chief Executive Officer, Emery Wells, and Co-founder John Travel will soon join Adobe after the deal is finalized. According to trusted sources, the deal is set to close in the fourth quarter of Adobe’s 2021 fiscal year.
Growing Demand for Video Collaboration Tools
Social media is one of the main driving forces behind the staggering growth in the demand for video editing tools. Since different types of video content continue to attract huddled masses on social media, demand for video collaboration tools has increased.
Scott Belsky said Adobe’s video customers, right from schools to large corporations are interested in creating video content.
There is a stark difference between how videos were edited in the past. Earlier, the video editing team was present in the same room. However, in today’s era, collaborators could be sitting in different corners of the world.
This is why Adobe and other software companies are heavily involved in creating tools that facilitate smooth video editing.
More about Frame.io
Frame.io is a New York-based tech startup that was founded in 2015. The company serves clients from different industries which include media agencies, brands, and broadcasters.
The company is backed by Accel and Insight Partners.
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Feature Image Source: Adobe
