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Adobe is not acquiring Figma anymore. Thoughts?
Adobe has terminated its $20 billion acquisition of Figma under regulatory pressure, leading to a $1 billion reverse termination fee.
Initially announced in September 2022, the merger faced international regulatory scrutiny due to Adobe's dominance in the design software market and fears of stifled innovation.
Regulatory bodies, including those in the UK and EU, posed significant challenges, with the UK's Competition and Markets Authority calling for substantial divestments.
Adobe disagreed with these findings but ultimately decided to proceed independently. Figma's CEO Dylan Field lamented the immense efforts to gain approval and the merger's failure.
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Launching soon!
I think if this means Figma is not getting slow and expensive (was my expectation), then that's a wonderful news - Figma is one of the best tools in the world ✌️🥰 would be awesome if they keep pushing the limits
@luisrieke Yeah definitely excited to see what strategic decisions they'll take now that they're solo. Definitely love using Figma on the daily, even for marketing work. 😬
It's a huge disappointment for Figma obviously, but they are still getting $1 billion! It's a lot of money for them and might be the best thing that has ever happened to them in the end. As for Adobe, it's a huge loss for them because Figma is a serious competitor for Adobe XD. It'll be interesting to see what happens next :-)
@simona_o_neill3 I'm sure they'll find some good use for that 1 billion in this economy 🤭
Overall good there is still some competition, they both have pretty monopolized positions within their respective niches so I can definitely see why regulators were pushing back on the deal.
Wow, what a turn of events for Adobe and Figma! It's definitely a bummer that the acquisition fell through, especially with all the effort put into it. On another note, I'm actually in the process of launching my own product soon and would love to hear your thoughts on how to navigate through it. Your experience and insights would be invaluable. I'll make sure to notify you once my product is live so you can check it out and give me some feedback. Looking forward to connecting with you!
Adobe's decision to not acquire Figma, driven by regulatory pressure, is a major development in the software industry. It emphasizes the role of antitrust laws in fostering a competitive environment, beneficial for consumers and small businesses. This could lead to a more vibrant ecosystem with diverse tools and services. For Adobe and Figma, it means charting independent paths forward.