Adobe’s failed $20 billion acquisition of design software rival Figma has turned into a costly misstep, as Figma’s explosive IPO debut now values the company at over $50 billion—more than double Adobe’s original offer. The deal collapsed in late 2023 after U.S. antitrust regulators intervened, fearing excessive market concentration. Instead of neutralizing a competitor, Adobe inadvertently fueled its rise: Figma’s shares surged 250% on their first trading day, from $33 to $115.50, with pre-market gains pushing the stock above $124.
A Rival Empowered by Regulatory Intervention
The IPO has transformed Figma into a formidable, well-capitalized adversary, with its CEO’s net worth estimated at $6 billion overnight. For Adobe, the irony is stark—the very regulators who blocked the merger have enabled a direct competitor to flourish. Analysts note Figma’s valuation underscores the soaring demand for collaborative design tools, a market Adobe could have dominated. Instead, the company now faces a rival with fresh capital and momentum, while investors question Adobe’s strategic foresight.
