Meta Ordered to Pay $567M Over Child Safety Violations in New Mexico 
Mercedes-Benz Stock Offers Deep-Value Potential as Citi Sees Recovery Catalysts 
Hims & Hers Shares Fall as GLP-1 Costs Widen Q2 Loss 
CBA Posts Record A$10.98B Profit Despite Cautious Outlook 
Trump Media Says Truth API Draws 10+ Customers as Conflict Concerns Grow 
Delta Flight Makes Emergency Landing in Atlanta After Cockpit Fumes Reported 
Nvidia Secures $500 Billion AI Infrastructure Push With Wall Street Giants 
Sony, TSMC Eye $6.3 Billion Japan Chip Venture for Next-Gen Image Sensors 
Deutsche Bank Upgrades Persimmon to Buy After Strong First-Half Results 
ASX Faces Legal Action Over Failed Blockchain CHESS Project 
Berkshire Hathaway Cash Falls as Abel Boosts Stock Buybacks 
Sanrio Shares Plunge as Q1 Profit Miss Overshadows Strong Sales 
OpenAI Restricts Astra AI Over Cyberattack Risks 
Treasury Wine Estates Shares Jump as U.S. Overhaul Lifts FY2026 Outlook 
US Judge Dismisses Gautam Adani Criminal Charges 
Airbus Joins Air India A320 Altitude Drop Probe 
Anthropic Signs $9.1B AI Data Center Deal With Riot Platforms 
Adobe Inc. and Figma Inc. have terminated their merger deal, which is valued at $20 billion. It was reported that the cancellation of the agreement was a mutual decision.
Adobe and Figma said on Monday, Dec. 18, that they decided to call off their merger bid after facing issues with competition regulators in the United Kingdom. As per CNBC, shares of Adobe shot up to about 1.8% in the pre-market after the news made headlines.
Initial Announcement of the Acquisition Deal
Adobe's acquisition of Figma was first revealed in September 2020. The agreed payment terms were a cash-and-stock deal worth about $20 billion. At that time, the stock price of the San Jose, California-headquartered computer software company plummeted on the news. Still, Adobe explained that the merger would significantly boost its portfolio.
To further convince the market that the deal is beneficial, the company said at that time that "the combination of Adobe and Figma will usher in a new era of collaborative creativity." However, the deal could not immediately proceed since the companies' merger must first be approved by the competition watchdogs.
Now, with the deal's termination, Adobe is required to compensate Figma with a $1 billion breakup fee. The company indicated the charge in its recent regulatory filing.
Canceled Deal After Hitting Regulator Roadblock
Antitrust regulators have recently been scrutinizing a good number of tech deals involving both minor and major firms. In the case of Adobe and Figma's agreement, the companies determined that they were not likely to get approvals from the U.K.'s Competition and Markets Authority and the European Commission. This realization led to their decision not to move forward with their merger.
"Adobe and Figma strongly disagree with the recent regulatory findings, but we believe it is in our respective best interests to move forward independently," Adobe's chairman and chief executive officer, Shantanu Narayen, said in a press release. "While Adobe and Figma shared a vision to jointly redefine the future of creativity and productivity, we continue to be well positioned to capitalize on our massive market opportunity and mission to change the world through personalized digital experiences."
Photo by: Szabo Viktor/Unsplash
