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.

Editor's Choice

Posts You Might Like

A Leader in Unrivalled Security | Joseph McGee

Following a distinguished Law Enforcement career Joe McGee founded The Securitatem Group to provide contemporary global operational specialist security and specialist security training products and services for private clients, corporate organisations, and Government bodies. They deliver a wide range of services, including complete end-to-end protection packages, close protection, residential security, protection drivers, and online and physical installations. They provide covert and overt investigations and specialist surveillance services with a Broad range of weapons and tactical-based training, including conflict management, risk and threat management, tactical training, tactical medicine, and command and control training.

Styling the Perfect Wine | Jay Wright

Jay Wright, CEO and Co-Owner of Virgin Wines infectious energy, enthusiasm, passion and drive has been instrumental in creating an environment that encourages talent to thrive and a culture that puts the customer at the very heart of every decision-making process.

Leading Farmacosmo with Vision and Innovation | Fabio de Concilio

Fabio de Concilio is the visionary CEO & Chairman of the Board at Farmacosmo, a leading organization dedicated to mental health and community support services. With a deep commitment to identifying and meeting customer needs, Fabio ensures that high standards are maintained across the board.

Creating A Cleaner & Healthier Environment | David CM Carter

Character Determines Destiny – so said Aristotle. And David CM Carter believes that more than anything else. For David, it has been numerous years of research into codifying Entelechy Academy’s 54 character qualities that underpin everything he stands for as a leader and teacher.

The-corporate-magazine-15

Leave us a message

Subscribe

Fill the form our team will contact you

Advertise with us

Fill the form our team will contact you​