- Adobe and Figma’s $20 billion acquisition attempt ceased due to regulatory obstacles. Figma still receives a $1 billion consolation prize, remaining a leader in collaborative design.
- Adobe aimed to acquire Figma, recognizing their own product, XD, lacked comparative strength. Regulatory barriers halted the acquisition after over a year of negotiation.
- The EU competition head viewed the acquisition as anticompetitive, stating it would diminish competition, resulting in higher prices or reduced quality for customers.
- Analysts suggest Adobe might refocus on XD or consider acquiring alternative collaboration startups like Miro, Webflow, or InVision, avoiding regulatory scrutiny similar to the Figma acquisition attempt.
- While Figma continues independently, it has expanded, hiring 500 employees and developing new features, including tools for developers and a generative AI layer for FigJam. Investors believe in Figma’s potential and foresee growth in the design products market. Adobe, however, faces a need to reassess its design collaboration strategy from scratch.