How Adobe Lost the Chance to Buy Figma… and Figma Ended Up Winning Big
In 2022, Adobe announced it would acquire Figma for 20 billion dollars. It looked like a bold move to cement Adobe’s dominance in the creative software space. But regulators in the U.S., U.K., and Europe stepped in, raising antitrust concerns. By December 2023, the deal collapsed, and Adobe had to pay Figma a 1 billion dollar breakup fee.
At the time, many wondered if Figma had just missed its biggest opportunity. Instead, it turned into one of the best things that ever happened to the company.
The Missed Acquisition
Adobe’s plan was simple: integrate Figma into its ecosystem and eliminate a fast-growing rival in collaborative design.
But governments were not convinced. Regulators argued that the deal would reduce competition in a critical sector. Facing no clear path to approval, Adobe and Figma walked away. The result: Adobe lost a chance to secure its place in the future of design collaboration, and Figma walked away with a billion-dollar check.
Figma’s Growth After the Breakup
That cash injection was more than three times what Figma had raised in venture funding over its lifetime. With money in the bank and its independence intact, Figma doubled down on growth.
- New products: Figma launched tools like Make, Sites, Buzz, and Draw, expanding far beyond its core design platform.
- Financial performance: In Q1 2025, Figma posted revenues of 228.2 million dollars (up 46 percent year-over-year) and 44.9 million dollars in net income. Its annual recurring revenue reached 600 million dollars in 2024.
- IPO milestone: On July 31, 2025, Figma went public. Shares opened at 33 dollars but closed at 115.5 dollars, giving the company a market cap between 60 and 68 billion dollars, more than double Adobe’s original offer.
For Adobe, this was more than a failed deal. It was a missed opportunity of historic proportions. The company not only lost a rival but also gave that rival the resources to accelerate growth.
Adobe still has strengths: a 21 percent market share in creative SaaS, 45 percent operating margins, and a mature ecosystem. But in this case, it underestimated regulators and overestimated its ability to absorb innovation by acquisition.
Figma’s story is also a case study for startups:
- Independence can be a strategic advantage.
- A failed acquisition is not the end, sometimes it is a beginning.
- If you have product-market fit and a strong community, staying the course can pay off bigger than an early buyout.
Figma’s rise after the failed Adobe acquisition shows that sometimes rejection is just redirection. With vision, execution, and community trust, the company turned a canceled deal into a springboard toward an even bigger success.
Adobe lost an opportunity. Figma gained a legacy.
The question now is simple: will Adobe find a way to reinvent itself against AI-first challengers and agile competitors, or will more startups follow Figma’s path and build their independence into dominance?