Adobe drops on the report stating DOJ plans suit to secure $20 billion Figma exchange

February 27, 2023: Adobe shares decreased nearly 5% in extended trading after a report that stated the U.S. Justice Department has an idea for a lawsuit to block the firm’s $20 billion acquisition of startup Figma.

Bloomberg reported that a case could come as soon as next month, citing an unnamed source.

In September, the deal was announced to help Adobe spur rapid growth to its portfolio and pick up technology that could improve existing groups in the Creative Cloud bundle that firms and independent designers use. Adobe has said Figma would have more than $400 million in annualized recurring earnings in 2022.

But in buying Figma, which firms use to design apps and websites and mix ideas, Adobe would also take a rising competitor off the market. Adobe, which has offered the X.D. software-design tool that has yet to generate substantial revenue, plays a significant role in the design software market.

U.S. competition groups have become willing to take a hard line on significant companies’ expansion efforts. In December, the U.S. Federal Trade Commission registered a lawsuit to stop Microsoft from getting video game publisher Activision Blizzard for almost $69 billion.

“The combination of Adobe and Figma will provide significant value to consumers, advance recent product categories and technologies and create unique market opportunities, and we’ve been important to hear from customers all over the design space who tell us they are excited regarding the benefits the transaction will take over,” an Adobe spokesperson said.

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The Fort McMurray First Nation Group of Companies is the wholly owned business entity of Fort McMurray 468 First Nation. It was established in 1987 as Christina River Enterprises, and the organization rebranded as FMFN Group in 2021. Providing Construction, Custodial, Petro-Canada Fuel & Convenience Store, and Transportation services to a broad portfolio of customers, the Group of Companies is creating financial stability and prosperity for the Nation.

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