Adobe 20B Dollar Figma: Adobe (ADBE.O) is gearing up to confront the EU’s antitrust charges in a closed hearing on December 8 concerning its proposed $20 billion acquisition of the cloud-based designer platform Figma, according to sources familiar with the matter. The European Commission, in its warning issued two weeks ago, expressed significant concerns about the potential reduction of competition in the global market for interactive product design software, where Figma is a direct competitor to Adobe.
The Commission argued that the acquisition might lead to the elimination of Figma as a competitor in the supply of vector editing tools and raster editing tools, thereby reinforcing Adobe’s dominance in the market. The upcoming hearing provides companies with a crucial opportunity to present their arguments directly to senior Commission officials, lawyers, and national antitrust watchdogs. Additionally, it allows interested third parties and rivals to attend and voice their perspectives on the matter.
The EU antitrust enforcer, expected to reach a decision on the deal by February 5, has refrained from making any comments on the ongoing proceedings. In response to regulatory concerns, Adobe has conveyed its openness to proposing remedies to address any potential antitrust issues. Dana Rao, the chief counsel of Adobe.
Beyond the European Union, the proposed acquisition has triggered concerns in Britain. The UK’s competition agency, on Tuesday, expressed apprehensions that the deal could potentially harm innovation in the software sector, particularly in the tools widely used by the majority of digital designers in the UK. As Adobe navigates through these antitrust challenges, the outcome of the closed hearing and any potential remedies proposed by the company could significantly impact the fate of the acquisition and the competitive landscape of the interactive product design software market.
Our Reader’s Queries
Is Adobe acquiring Figma for $20 billion?
Adobe has decided to abandon its plans to acquire Figma, a web-based collaborative design platform, due to regulatory opposition to the proposed $20 billion deal. The two companies have mutually agreed to terminate their merger agreement, which was initially announced on September 15, 2022.
How much will Adobe pay for Figma?
Adobe’s recent failed acquisition of Figma marks a significant moment in the design software industry. The $20 billion deal’s collapse could have far-reaching consequences for years to come. Despite initial plans for a partnership, Adobe and Figma have now decided to go their separate ways. This unexpected turn of events has left many wondering what the future holds for both companies and the wider design community. Only time will tell how this will impact the industry as a whole.
Why did Adobe pay so much for Figma?
Adobe has been exploring ways to expand its cloud platform and has recently started offering many of its tools as web-based experiences. However, to further increase its market share, Adobe was looking for new ways to extend its cloud platform. The acquisition of Figma would have been a great opportunity for Adobe to achieve this goal, as it would have allowed them to tap into the huge demand for web-based experiences.
Is Adobe shutting down Figma?
Adobe’s proposed acquisition of Figma for $20 billion has been called off due to opposition from antitrust regulators, particularly in the U.K. and EU. Figma CEO Dylan Field expressed his disappointment, while both companies maintain that they disagree with the watchdogs’ reasons for opposing the deal.