Congratulations to Affinity with the acquisition. Affinity has been noticed and rewarded for their decades of dedication.
For me personally, I met Ash’s announcement with mixed feelings for the same reasons we can read here in this forum. There a many business examples of corporate acquisitions that involve VC , PE or shareholders where it did not end well for its customers (price hikes, reduced product quality etc.) or its employees (restructuring, lay-offs etc).
The problem I had with Adobe in 2013 is that they no longer offered the user a choice: a perpetual license or a subscription-based license. There is a business case for both license models, but Adobe took that choice away from the customer. Therefore I went straight to Affinity and never looked back.
I would summarize Canva’s USP as: accessible and affordable design for non-professionals.
I see three possible strategies with the recent acquisition:
Compete with Adobe: extend the Canva product portfolio with Affinity products for the professional market with desktop apps and exchangeable files. This may be the best strategy for Affinity’s user-base; even better if Canva decides to offer two licenses models: perpetual and subscription.
Complement Adobe: integrate Affinity products to offer more design capabilities for the non-professional market. In this case I don’t see the Affinity products survive in their current form and I expect them to become part of the Canva SaaS platform. A subscription will be the most likely license model.
Eliminate competition: If Canva considers Affinity a potential future threat, it just acquired Affinity to shelf its products (Like Adobe, Microsoft, Corel, Symantec etc). This is not a likely strategy as Canva would have offered the aforementioned 400M USD instead of 1B USD for the Affinity acquisition.
Even if we end up with the first strategy, we as Affinity users, may not be out of the water yet. Canva has IPO ambitions. When public there will be pressure on Canva to offer subscription-based licenses only, because subscriptions offer a predictable cash flow and reduce new development risks. We can only hope it’s different his time.