The Figma-Adobe Acquisition Deal Falls Through
The highly anticipated acquisition of Figma by Adobe, estimated to be worth $20 billion, has been called off after regulators raised concerns about the potential for a creativity software monopoly. The news came as a disappointment to Figma's 1,300 employees, who were expecting a windfall from the deal.
The Fallout
In response to the failed merger, Figma called back its employees from vacation to attend an emergency optional town hall meeting. During the 60-minute session, CEO Dylan Field explained that the decision to cancel the deal was a joint one made by both companies. The future of Figma was discussed, and employees were assured that the company remains stable with a positive outlook.
The Breakup Fee
Although the deal did not go through, Figma will receive a breakup fee of $1 billion from Adobe. However, it is unclear when this payment will be made and how it will be allocated. A spokesperson for Figma stated that the money will be used to accelerate the company's impact, but the specific details are yet to be decided.
Regulatory Concerns
The failure of the merger to win approval from European Union lawmakers was a significant setback. Regulators had expressed concerns about the potential creation of a creative software monopoly, which raised red flags during the negotiations. Despite spending thousands of hours with regulators, Figma was unable to convince them that the deal would not result in anti-competitive practices.
Missed Opportunities
Had the acquisition been successful, Figma stood to gain a significant windfall. Co-founder and CEO Dylan Field would have received a 10% stake in the company, valued at $2 billion. Additionally, employees were expecting substantial payouts, with reports suggesting that they could have received over 40% of their salaries upon the deal's closure. These payouts would have provided many employees with the means to become homeowners.
Looking Ahead
While disappointment lingers within the Figma workforce, the company remains optimistic about the future. Figma has had a decent performance in 2023 and recently launched an innovative design keyboard. With its ongoing commitment to innovation, the company still has the potential to achieve significant breakthroughs in the coming years.
In conclusion, the failed acquisition deal between Figma and Adobe has left Figma's employees disappointed but hopeful for the future. The company will receive a breakup fee from Adobe, and although the allocation of these funds is yet to be determined, Figma remains focused on accelerating its impact. Despite the setback, Figma is confident in its stability and positive trajectory moving forward.
