Figma CEO Dylan Field laments demise of $20 billion deal with Adobe

Among the recent failed deals, the $20 billion takeover of Figma by Adobe stands out as a significant case. The goal was to bring about a new era of collaborative creativity, but regulators in three jurisdictions viewed it as an unacceptable attempt by a software giant to acquire a potential future competitor. Figma’s CEO, Dylan Field, believes this highlights a fundamental divide in perspectives between businesses and regulators when it comes to competition.

Field expressed frustration and sadness over the deal’s failure in his first interview since it was announced. The end of the deal is seen as a victory for antitrust enforcers, with both the European Commission and Britain’s Competition and Markets Authority prepared to challenge the transaction. The Justice Department was also considering opposing it. The concerns centered around whether the acquisition of Figma by Adobe would eliminate a future competitor, drawing parallels to Facebook’s acquisition of Instagram in 2012. Similar concerns have influenced other enforcement efforts against Microsoft’s takeover of Activision Blizzard and Meta’s acquisition of Within.

Field argued that the deal would have enabled Figma to expand its offerings, but acknowledged a gap in understanding between regulators and his company. As it became clear in recent weeks that the deal was unlikely to succeed, Field decided to abandon it for the sake of clarity and certainty for employees and customers. He also acknowledged that finding another buyer for Figma would be challenging due to regulators’ opposition. Despite the breakup fee of $1 billion that Adobe will have to pay, investors remained unfazed, as Adobe’s shares closed 2.5% higher on Monday.