Synthesia rebuffs three billion dollar Adobe bid as AI video ambitions soar

Synthesia, the London-based artificial intelligence video start-up renowned for its hyper-realistic content, has declined a takeover approach from US software giant Adobe worth a reported three billion dollars. The company, known for its work creating a multilingual digital version of David Beckham, was engaged in discussions with Adobe earlier in the year, but both parties agreed to end talks as Synthesia pursues its ambition to remain independent.

Adobe’s interest in Synthesia followed a ten million pound investment in April, indicating growing alignment between the creative technology sector and advanced AI-driven video solutions. However, sources close to the company suggest that Victor Riparbelli, Synthesia’s chief executive, intends to scale the business independently, with a future public listing on the horizon.

Synthesia, founded in 2017, has quickly emerged as a leader in adopting generative AI for corporate communication and content creation. Its platform allows users to produce videos in multiple languages, significantly reducing production costs and bridging the gap between technology and storytelling. One notable campaign saw digital David Beckham deliver messages in nine languages to promote malaria awareness, highlighting the platform’s versatility.

The company’s financial performance mirrors its ambitious expansion plans. Pre-tax losses widened to $56.5 million for the year ended December 2024, up from $28.1 million, amid considerable investment in product development and team growth. Revenue, though, surged by 82 per cent to $58.2 million, reflecting heightened demand for AI-powered video solutions. Synthesia’s recent funding round, disclosed in January, gave the company a valuation of $2.1 billion, with the next round expected to raise this figure to approximately $3 billion. Notably, continued support is anticipated from Nvidia’s chief executive Jensen Huang, underlining industry confidence in the firm’s prospects.

Technological innovation remains core to Synthesia’s appeal. The start-up recently introduced “video agents” capable of holding real-time conversations using company information, as well as interactive avatars with advanced voice cloning and natural movement. These advancements have potential to rewrite the rules of video creation, drawing comparisons with the transformative effect Adobe’s Photoshop had on digital imaging.

Rival interest in Synthesia came from Meta, owner of Facebook, yet those negotiations stalled earlier this year. Adobe’s pursuit follows a pattern of strategic acquisition activity, after its attempt to purchase design group Figma collapsed facing regulatory barriers. With Adobe’s shares down 27 per cent over the past year and the firm seeking to broaden its AI capabilities, Synthesia’s independence stands as an intriguing counterpoint in a consolidating market.