Shock As Adobe Pulls Out From Billion Deal With Figma

Adobe's anticipated merger with Figma won't be happening, a surprising shift from a deal valued at an incredible billion. The reasons behind this decision are certain to intrigue you.

Regulatory Concerns and Antitrust Issues

Regulatory fears were the main driver of the decision to abandon the merger. Notably, the European Commission and the UK's antitrust regulator raised significant concerns about the project.

The US Department of Justice was preparing to launch an antitrust investigation as well. Even in the face of comprehensive and detailed explanations provided to the regulators, there was no discernible way to gain regulatory approval.

Mutual Agreement to Abandon the Project

The decision to abandon the project wasn't one-sided. It was a joint agreement between Adobe and Figma. Despite disagreeing with the regulators' findings, both companies concluded that pursuing their individual paths was the most beneficial approach.

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The Fallout

Consequently, Adobe will be required to pay a hefty billion termination penalty to Figma, a clear illustration of the high stakes involved in this business decision.

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