Adobe slips on report saying DOJ plans suit to block $20 billion Figma deal
Summary
Adobe shares fell as much as 5% in extended trading following a report that said the U.S. Justice Department is planning a lawsuit to block the companys $20 billion acquisition of startup Figma. The deal, announced in September, would help Adobe spur fast growth to its portfolio and pick up technology that could enhance existing programs in the Creative Cloud bundle that businesses and independent designers use. Adobe, which has offered the XD software-design tool that has failed to generate substantial revenue, plays a major role in the design software market. In December, the U.S. Federal Trade Commission filed a lawsuit attempting to stop Microsoft from acquiring video game publisher Activision Blizzard for nearly $69 billion. David Wadhwani, president of Adobes digital media business and a key figure in the Figma deal, told analysts on a conference call in December that "the regulatory process is proceeding as expected."
