So, Adobe and Figma had this big plan for a $20 billion merger, but guess what? It’s off. Why? Well, they hit a wall trying to get the thumbs up from regulators in the UK and the EU. The snag led to an agreement where Adobe has to hand over a cool $1 billion as a termination fee to Figma.
It all started in November when the UK’s Competition and Markets Authority (CMA) and the European Commission got antsy about the potential impact on competition. The CMA even hinted at blocking the deal or making Adobe sell off Figma’s main product. Ouch.
Adobe was initially like, “Hey, we’re not gonna suggest any fixes for this.” They felt no solution would satisfy the regulators. Fast forward to now, and it’s official – no merger.
The European Commission wasn’t any more chill about it. Last month, they warned Adobe that this deal might mess with the competition for design software globally. They were looking at vector editing tools, like Illustrator, and raster editing tools, like Photoshop.
Adobe had thought about offering some solutions to make everyone happy, but that idea seems to have gone out the window. The CEOs from both sides, Adobe and Figma, expressed disagreement with the regulators but decided to part ways amicably.
They even foresaw a potential showdown with the US Department of Justice, anticipating that the DOJ might try to block their union. Talk about a rollercoaster ride for these design giants.
