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The New Era of Collaborative Creativity is Canceled: Adobe Calls Off Figma Acquisition, Will Pay $1 Billion Cancellation Fee

Adobe FigmaA little over a year ago, Adobe announced that they were acquiring Figma,  We snickered a bit about their statement that this would “usher in a new era of collaborative creativity”.

Alas, the new era is now canceled.

Adobe announced today that they’re calling off the acquisition:

Although both companies continue to believe in the merits and procompetitive benefits of the combination, Adobe and Figma mutually agreed to terminate the transaction based on a joint assessment that there is no clear path to receive necessary regulatory approvals from the European Commission and the UK Competition and Markets Authority.

And note this:

The companies have signed a termination agreement that resolves all outstanding matters from the transaction, including Adobe paying Figma the previously agreed upon termination fee.

That fee is a cool $1 billion.  For a company whose revenue is about $17-18 billion a year with a profit around $5 billion, that’s a quite a hit.


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