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<p data-beyondwords-marker="9f7a72a1-fa2d-4b4f-84b9-e20b344b69b6"><a href="https://www.adobe.com/" data-type="URL" data-id="https://www.adobe.com/" target="_blank" rel="noopener noreferrer nofollow">Adobe</a> and <a href="https://www.figma.com/" data-type="URL" data-id="https://www.figma.com/" target="_blank" rel="noopener noreferrer nofollow">Figma</a> have, in response to growing regulatory pressures in the UK and EU, announced the mutual termination of their merger agreement on Monday. The deal, involving the design software company’s intended acquisition of the Figma product design platform for $20 billion, has been called off. As part of the termination, Adobe will now have to pay Figma a reverse termination fee of $1 billion in cash.</p>
<p data-beyondwords-marker="10264829-6fd6-461e-a4e9-3a6780601535">“Adobe and Figma strongly disagree with the recent regulatory findings, but we believe it is in our respective best interests to move forward independently,” Adobe chair and CEO, Shantanu Narayen said&nbsp;<a href="https://news.adobe.com/news/news-details/2023/Adobe-and-Figma-Mutually-Agree-to-Terminate-Merger-Agreement/default.aspx" target="_blank" rel="noopener noreferrer nofollow">in a statement</a>.</p>
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<p data-beyondwords-marker="ca50f591-837c-4c84-a859-e7d867c53387">The statement added that while both companies shared a vision to jointly redefine the future of creativity and productivity, we continue to be well positioned to capitalize on our massive market opportunity and mission to change the world through personalized digital experiences.</p>
<p data-beyondwords-marker="353f212e-e5bd-4622-99bb-a0cdb10181d7"><strong>Read More: <a href="https://technext24.com/2022/09/15/adobe-acquire-figma-20bn-bran-merger/#google_vignette" data-type="URL" data-id="https://technext24.com/2022/09/15/adobe-acquire-figma-20bn-bran-merger/#google_vignette" rel="noopener noreferrer nofollow">Adobe set to acquire Figma for $20bn, brand merger on the way </a></strong></p>
<h5 id="regulatory-hurdles-force-adobe-to-abandon-figma-merger" data-beyondwords-marker="dc78cf8c-3a19-4c5b-875f-b58cec3fc5b1"><strong>Regulatory hurdles force Adobe to abandon Figma merger</strong></h5>
<p data-beyondwords-marker="c49605e4-f818-4ca1-b6a7-195d1863f95f">Regulators, citing concerns over Adobe’s near-monopoly in the design software market, have successfully impeded the planned merger with Figma. The pushback stems from fears that the former’s acquisition of the rapidly growing product design platform, surpassing Adobe’s XD application in popularity, would stifle innovation by preventing Figma from flourishing independently. Despite ongoing probes and Adobe’s rejection of suggested remedies by the UK’s Competition and Markets Authority (CMA), discussions were slated for December 21st, with a final decision deadline of February 25th.</p>
<p data-beyondwords-marker="ef6f3c53-f303-4a6f-a101-12c8c46d9557">As reported by TheVerge, the <a href="https://www.theverge.com/2023/8/8/23810981/eu-probe-investigation-adobe-figma-20-billion-merger-acquisition" data-type="URL" data-id="https://www.theverge.com/2023/8/8/23810981/eu-probe-investigation-adobe-figma-20-billion-merger-acquisition" target="_blank" rel="noopener noreferrer nofollow">European Commission</a>, alongside the United States Department of Justice (DOJ), was also scrutinizing the deal. But in the wake of this announcement, the European Commission has dropped its antitrust investigation. With mounting pressure, Adobe faced limited options to proceed with the merger while securing all desired Figma assets or addressing concerns over anti-trust implications for its own applications.</p>
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   CEO Dylan Field
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<p data-beyondwords-marker="6dc6d6b9-7408-44d6-9704-7b6d3c01277f">“It’s not the outcome we had hoped for,” said&nbsp;<a href="https://www.figma.com/blog/figma-adobe-abandon-proposed-merger/" target="_blank" rel="noopener noreferrer nofollow">Figma CEO Dylan Field in a statement</a>. “But despite thousands of hours spent with regulators around the world detailing differences between our businesses, our products, and the markets we serve, we no longer see a path toward regulatory approval of the deal.”</p>
<p data-beyondwords-marker="fbd09251-6159-4e3e-bed0-1677eab1e992">As the dust settles, questions linger about the impact on design innovation and market dynamics. With the merger off the table, both companies are left to navigate the aftermath. Will this decision open new doors for Figma’s independent growth, or will it lead to a reevaluation of acquisition strategies in the tech industry?</p>
<p data-beyondwords-marker="d92e0edc-df35-4525-90b2-96caa5706111">In a landscape where regulatory scrutiny continues to shape the trajectory of major business deals, the Adobe-Figma saga serves as a compelling case study, highlighting the delicate balance between corporate aspirations, regulatory oversight, and the pursuit of innovation.</p>
<p data-beyondwords-marker="60a43d09-cefa-4287-8c4a-88f0d62e3da3"><strong>Read More: <a href="https://technext24.com/2023/09/28/take-professional-photos-smartphone/" data-type="URL" data-id="https://technext24.com/2023/09/28/take-professional-photos-smartphone/" rel="noopener noreferrer nofollow">5 steps to taking professional photos with your Smartphone</a></strong></p>

Adobe’s $20 billion Figma merger scrapped amid regulatory pressures

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