Recently, Adobe announced that it will end its plan to spend $20 billion to acquire FIGMA, a design collaboration platform. It is reported that Adobe expressed concern that there is "no clear road" to achieve the acquisition due to policy factors, so the two parties decided to terminate the merger agreement under pressure from the EU and UK regulators.
Figma is a design collaboration platform that allows users to design, collaborate, and share in the cloud. The deal was seen as a major merger in the design software market, but ultimately did not materialize.
Adobe and Figma reportedly decided to part ways despite disagreement with the regulator's findings. However, this incident is not Adobe's only recent regulatory trouble. It was previously reported that Adobe has a cumbersome and costly subscription cancellation policy, and the company is facing hefty fines for violating consumer rights laws. In this regard, Adobe has revealed to investors in the second half of last year that the company has been working with employees of the Federal Commission (FTC) on this matter since June 2022.
As soon as this news came out, it undoubtedly triggered a new round of market attention to Adobe. With the increasingly fierce competition in the market, whether the M&A strategy is feasible and whether it will be affected by the policy has become the focus of attention in the industry. We will also pay close attention to the outcome of this incident.
post by jack