Adobe just gave up on its plans of buying Figma

Adobe Inc (NASDAQ: ADBE) opened in the green this morning after giving up on its pursuit of buying Figma for $20 billion.  

Adobe cites regulatory hurdles

The multinational cited regulatory hurdles for the move that marks a surprising change of stance for its CEO Shantanu Narayen who “believed in the acquisition” up until earlier this week.

CMA – the Competition and Markets Authority of the United Kingdom had recently raised concerns that the said transaction could hurt competition as Invezz reported here. According to the Chief Executive of Adobe Inc though:

Shares of the computer software company are currently up about 85% for the year.

Adobe Inc remains well positioned

A regulatory filing on Monday also confirmed that Adobe will now have to pay $1.0 billion to Figma in break-up fee.

Still, CEO Narayen remains confident that his company is “well positioned” in its “mission to change the world through personalised digital experiences”, as per a press release on Monday.

David Wadhwani – the Senior Vice President of Adobe Inc also confirmed in a separate blogpost today that the California-headquartered firm continues to be interested in partnering with Figma in other ways.  

The news arrives only days after $ADBE reported market-beating results for its fourth financial quarter but offered tepid guidance for the future (find out more). Wall Street currently has a consensus “overweight” rating on shares of the tech company.