On Monday, Adobe and Figma--the cloud-based design tool--announced that their planned merger will be ended due to regulative issues. In a statement, Adobe CEO Shantanu Narayen stated, "Adobe and Figma strongly oppose the recent regulatory findings; however, we feel that it is in the best interest of both entities to move forward separately." To compensate, Adobe will provide Figma with a breakup fee of $1 billion, which they documented in a regulatory filing.
Adobe and Figma announced Monday that they will terminate their planned $20 billion merger due to regulatory hurdles. "We strongly disagree with the recent regulatory findings, but believe it is in our respective best interests to move forward independently," Adobe's CEO, Shantanu Narayen, said in a statement. Adobe originally announced the acquisition in September 2020, noting that it would be a natural complement to their portfolio. Adobe will pay Figma a $1 billion breakup fee, as outlined in a regulatory filing. Narayen had recently voiced his enthusiasm for the merger to CNBC, noting that it would combine what Figma has done with creative collaborative software with what Adobe has done in the creative arena. However, antitrust regulators have increasingly scrutinized many tech deals, including Microsoft's investment in OpenAI, Meta's sale of Giphy to Shutterstock, and Adobe and Figma's attempted merger. Although Figma CEO Dylan Field stated that the process of working with Adobe has reinforced his belief in the merits of the deal, he also pointed out that regulators do not see it the same way. David Wadhwani, a senior vice president at Adobe, wrote in a blog post "we will continue to look for ways to partner with Figma to delight our joint customers."
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