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Adobe and Figma Terminate $20B Merger

Adobe and Figma Terminate $20 Billion Merger Amid Regulatory Pressure


Facing regulatory challenges from the UK and EU, Adobe and Figma jointly announced the termination of their merger agreement on Monday.

The proposed $20 billion acquisition by Adobe of the Figma product design platform will not proceed, resulting in Adobe paying Figma a reverse termination fee of $1 billion in cash.

In a statement, Adobe chair and CEO Shantanu Narayen expressed disagreement with recent regulatory findings but emphasized the decision to move forward independently.

The termination follows concerns from regulators about Adobe's near-monopoly in the design software market, fearing it would stifle innovation and competition if Figma were absorbed.

Regulators, including the UK's Competition and Markets Authority (CMA), opposed the deal and proposed remedies, including significant divestments, to address antitrust concerns.

Adobe rejected these suggestions in a letter dated December 14th, leading to discussions scheduled for December 21st and a final decision deadline on February 25th.

The European Commission, also scrutinizing the deal, has dropped its antitrust investigation following Adobe's announcement.

Figma CEO Dylan Field acknowledged the disappointment in the outcome, stating, "despite efforts to address regulatory concerns, we no longer see a path toward approval."

Top Updates on Adobe-Figma Merger Termination:

  1. Mutual Termination: Adobe and Figma mutually agree to terminate their merger agreement amid regulatory challenges.

  2. Reverse Termination Fee: Adobe will pay Figma a $1 billion cash reverse termination fee due to the termination of the merger.

  3. Disagreement with Regulators: Adobe and Figma express disagreement with recent regulatory findings but choose to move forward independently.

  4. Antitrust Concerns: Regulators cited concerns about Adobe's near-monopoly in the design software market, impacting innovation and competition.

  5. Rejected Remedies: Adobe rejects proposed remedies by the UK's Competition and Markets Authority (CMA), leading to scheduled discussions and a final decision deadline.

  6. European Commission's Decision: Following Adobe's announcement, the European Commission drops its antitrust investigation into the Adobe-Figma merger.


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