Sep 15 2022: Adobe to acquire Figma in a deal worth $20 billion

Back in Sep 15 2022: Adobe to acquire Figma in a deal worth $20 billion

Adobe has officially announced that it is acquiring design platform Figma for around $20 billion in cash and stock. Figma has been a strong competitor to Adobe's XD products in recent years, and the acquisition will enable Adobe to combine its own community with Figma's collaborative design capabilities.

Figma will continue to operate autonomously, with its CEO continuing to serve in that role. The combined company aims to improve product design on the web by leveraging Adobe's expertise in areas such as 3D, video, vector, and fonts. Further details of Adobe's plans will be revealed in an upcoming conference call with investors.

Fast forward to Dec 18 2023: Adobe gives up on $20 billion acquisition of Figma

Adobe has abandoned its $20 billion acquisition of Figma, a product design software company, due to regulatory challenges from competition probes in the UK and EU. The deal faced concerns about its impact on the product design, image editing, and illustration markets. Both companies disagreed with the regulatory findings but decided to move forward independently.

Adobe will pay Figma a $1 billion termination fee. This highlights the mixed signals from competition regulators regarding Big Tech acquisitions of potential rivals. Despite the failed deal, Adobe has shifted its focus towards incorporating artificial intelligence into its products.

Can regulatory challenges in competition probes hinder the acquisition of promising start-ups by big tech companies?