Adobe’s Failed Acquisition of Figma Has Cost the Company Over $38 Billion and Counting — Here’s How High It Could Go

Adobe’s (ADBE) ambitious $20 billion bid to acquire cloud-based design juggernaut Figma (FIG) was set to reshape the creative software market. Instead, the failed deal culminated in a staggering $1 billion break-up fee — and a far greater “what could have been,” as Figma’s public market debut this week eclipsed all expectations, leaving Adobe on the sidelines of one of tech’s hottest stories.

The acquisition, agreed upon in 2022, would have seen Adobe pay $20 billion for Figma, bringing its market-leading collaborative design platform into the Adobe fold. However, due to mounting regulatory scrutiny in both Europe and the UK, Adobe and Figma mutually agreed to terminate the deal in December 2023. Under the terms of the agreement, Adobe was required to pay Figma a reverse termination fee of $1 billion in cash — a record-setting penalty that instantly intensified the sting of the failed effort.