20 billion acquisition fell apart.
Adobe told Figma “We are breaking up”.
A year ago, everybody was celebrating and congratulating one of the best startup success stories (20 billion by a public company). Then it fell apart.
Maybe all the management wants for Christmas is deal…
The regulator comes in and wants too many reconstructions (to prevent Adobe from being more dominant in the design market).
Adobe decided to tap out probably because the acquisition might not be as strategic if they were to adhere to all the regulator requests.
Adobe has to pay 1 billion in fines to Figma for the breakup.
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When the acquisition was announced in September 2022, a lot of designers worried about their favorite product being turned into a profit-reaping machine by the giant public company. Perhaps Figma remaining independent will indeed be better for the market.
According to many, Figma should be a healthy business with steady revenue. Figma thinks they will finish 2023 with over $600 million in annual recurring revenue, about a 40%-plus increase YOY.
