Adobe (finally) abandons Figma acquisition

The deal had been heavily scrutinized by European regulators...

Image credit: Image Creator from Microsoft Designer/DALL.E and Canva

Adobe and Figma decided to call off their merger due to mounting pressure from regulators in the UK and EU.

Here are a few key points:

• The agreement (entered 15 months ago!), where Adobe intended to buy Figma for $20 billion, was mutually terminated. As part of this, Adobe will pay Figma a $1 billion cash fee.

• The regulators expressed concerns about Adobe's dominant position in the design software market and worried that acquiring Figma might stifle innovation. Despite disagreements with regulatory findings, both companies chose to move forward independently.

• The UK's Competition and Markets Authority (CMA) proposed remedies for the merger, including significant asset divestments, which Adobe rejected.

• With regulatory pressure mounting, the deal became unfeasible, leading to its termination.

• Figma's CEO expressed disappointment but acknowledged the lack of a path towards regulatory approval for the deal despite extensive efforts to highlight differences between their businesses and products.