- Adobe scraps $20B Figma bid after EU/UK antitrust pushback.
- Regulators labeled Figma an “effective competitor,” foiling merger plans.
- Failure shows European regulators can torpedo Big Tech M&A despite legal efforts.
The deal is scrapped
Adobe has scrapped its blockbuster $20 billion bid for design startup Figma after running into a regulatory buzzsaw in Europe, ending one of tech’s largest recent M&A deals.
The companies admitted Monday that antitrust enforcers in the EU and UK remained unconvinced the deal wouldn’t harm competition despite months of arguing its merits.
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Regulatory worries killed it
Regulators called Figma an “effective competitor” whose acquisition by Adobe could crimp innovation. Unable to ease those worries, Adobe and Figma preemptively terminated the agreement rather than risk an adverse precedent.
Adobe must now pay Figma a $1 billion breakup fee for the collapsed tie-up. While the DOJ was also probing the deal, ultimately, transatlantic regulatory turbulence grounded what seemed to be a landmark tech merger.
Demonstration of European regulatory power
It displays again how newly stringent attitudes from EU and UK trustbusters can torpedo Big Tech M&A plays, even with substantial legal fees deployed.
For Adobe, it’s back to the drawing board after failing to neutralize Figma. Whether it returns even more flush with cash remains to be seen.
