Adobe Acquires Design Rival Figma in Massive $20 Billion Deal
Adobe announces a $20 billion acquisition of Figma, effectively eliminating one of its biggest competitors in the digital design space. The move sparks mixed reactions from investors and the creative community alike.
Adobe announces a massive $20 billion deal to acquire Figma, effectively removing one of its biggest competitors in the digital design space. The acquisition comes as half cash and half stock, and it includes 6 million additional restricted stock units for Figma's CEO and employees that vest over four years. The deal is expected to close in 2023, pending regulatory clearances and stockholder approval.
The announcement coincides with Adobe's third-quarter earnings report, which shows revenues of $4.43 billion and non-GAAP earnings per share of $3.40. However, Adobe provides a lukewarm outlook for the next quarter and notes that it might need a loan to finance the Figma acquisition. Investors respond negatively to the news, causing Adobe's stock to drop nearly 10% in pre-market trading.
Figma brings a streamlined, cloud-based design and prototyping platform with roughly 4 million users to Adobe's expansive portfolio of digital creation tools. While the purchase expands Adobe's reach in the modern design market, the creative community expresses noticeable concern over the future of Figma's popular, simplified interface. These user reactions serve as a clear signal for Adobe to manage the integration carefully.