Adobe reportedly explored the acquisition of AI video generation startup Synthesia for approximately $3 billion in recent months. The discussions, however, did not result in a deal due to a disagreement over the price. This move signals Adobe's aggressive strategy to expand its capabilities in the generative AI video sector, a rapidly growing and competitive field. The potential price tag would have been a significant investment for Adobe and highlights the high value placed on innovative AI technologies. The London-based Synthesia, known for its AI software that creates video avatars of people, was valued at $2.1 billion in a previous financing round. The talks with Adobe came after Adobe had already invested $100 million in the startup in April. Following the unsuccessful negotiations with Adobe, Synthesia is reportedly now seeking to raise additional venture funding at a valuation that could exceed the $3 billion discussed with Adobe. There was no immediate significant market reaction noted in the reports.
Adobe Reportedly Weighed a $3 Billion Acquisition of AI Video Startup Synthesia
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