Figma’s $20 Billion Acquisition by Adobe Falls Through Due to Regulatory Issues

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  • Adobe terminates $20 billion deal for cloud-based designer platform Figma due to regulatory hurdles in the European Union and the UK.
  • Shares of Adobe rose 1.7% premarket on Monday following the announcement, indicating investor confidence in Adobe’s decision.
  • Britain’s competition watchdog rejects Adobe’s proposed remedies, leading to the termination of the deal between Adobe and Figma.

Adobe, the multinational software company, has terminated its $20 billion deal to acquire Figma, a design and prototyping tool, due to regulatory hurdles, the companies announced on Wednesday.

The deal, which was announced in April, was expected to be a game-changer for Adobe as it looked to expand its presence in the design software market. However, it faced challenges from regulators who were concerned about the potential antitrust implications of the acquisition.

In a joint statement, the companies said, “We have made the difficult decision to terminate the deal due to the regulatory hurdles that we were unable to overcome. While we believed that the acquisition would have been beneficial for both companies and our customers, we respect the regulatory process and will continue to focus on delivering innovative products and solutions to our users.”

Figma, which has gained popularity among designers and developers for its collaborative features and ease of use, was seen as a valuable addition to Adobe’s suite of creative software. However, the deal ran into opposition from industry rivals and watchdogs who raised concerns about the impact on competition in the design software market.

The termination of the deal is a setback for Adobe, which has been looking to expand its portfolio and fend off competition from the likes of Sketch, InVision, and other design software providers. It also highlights the increasing scrutiny of large tech companies’ acquisitions and the challenges they face in navigating regulatory approval processes.

Both Adobe and Figma have stated that they remain committed to their respective missions and will continue to focus on serving their customers with innovative products and solutions. Despite the setback, they remain optimistic about the future of their businesses and the opportunities for growth in the design software market.

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