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1
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· Posted on
February 21, 2024

Adobe's suffers a $20 billion failed love affair with Figma

The regulators have raised major concerns toward Adobe's acquisition of Figma, claiming that it would 'harm customers and stifle innovation'.

What's the key learning?

  • Adobe needs to cough up a $1 billion termination fee for ending the relationship.
  • In 2023, regulators have run their eyes over mergers or acquisitions with a fine tooth comb - and it doesn't always end well.
  • While the regulator intervention may be good for consumers, it has quite a few investors concerned about the future of the investment markets.

👉 Background: Adobe is the global software design company that has been the leader ion graphics, illustration, and animation... before other tools like Canva and Figma became easier to use and more accessible.

👉 What happened: In 2022, Adobe announced a $20 billion USD acquisition of Figma. And just when we thought it was finalised, the regulators have raised major concerns, claiming that the acquisition would 'harm customers and stifle innovation'.

👉 What else: Now, the CEO of Adobe and Figma said that they "no longer see a path towards regulatory approval." And, Adobe needs to cough up a $1 billion termination fee for ending the relationship.

What's the key learning?

💡In 2023, regulators have run their eyes over mergers or acquisitions with a fine tooth comb - and it doesn't always end well.

💡There have been a number of recent acquisition attempts that haven't gone to plan:

  • Meta had to finally sell Giphy in May after UK regulators blocked the acquisition
  • Microsoft's $69 billion acquisition of Activision was blocked before finally being approved
  • In Australia, the ANZ and Suncorp deal had fallen through

💡And while the regulator intervention may be good for consumers, it has quite a few investors concerned about the future of the investment markets.

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