The Failed Adobe-Figma Merger: What Happened and What’s Next
Figma, a popular design software company, was on the verge of a major acquisition by creative giant Adobe. With the deal valued at $20 billion, Figma’s employees were gearing up for potential windfall with the company’s CEO Dylan Field’s 10% stake reportedly worth $2 billion. However, hopes were dashed when European Union lawmakers blocked the merger, citing concerns of a potential creativity software monopoly.
The sudden news left Figma’s 1,300 employees shocked as they were called back from their holiday vacations for a last-minute town hall meeting on Monday morning to discuss the failed deal. Figma CEO Dylan Field expressed disappointment in the decision, stating that the company had spent over 15 months in talks with regulators in an effort to secure the merger. Now, Adobe will have to pay Figma a $1 billion breakup fee.
However, Figma remains optimistic about the future. Despite the setback, the company has seen significant growth and reports over $600 million in annual recurring revenue for 2023, positioning it as a top late-stage private tech firm.
While the failed merger has led to disappointment among the Figma employees, it has brought some unexpected gains for Adobe shareholders. Following the cancellation of the deal, Adobe’s stock has surged by 4%, reflecting Wall Street’s sentiments towards the failed acquisition.
Additionally, the news has been met with approval by Figma users, many of whom prefer the software as a simpler and cheaper alternative to Adobe’s offerings. One designer expressed their relief, calling it “fantastic news for everybody else in the world.”
Ultimately, while the failed merger may have been a setback for Figma, the company is determined to move forward and continues to be optimistic about its future. With its solid revenue growth and strong market position, Figma is confident that its best days are still ahead.