As Adobe proposed the acquisition of its start-up rival Figma, the United States Department of Justice requested more information and data to support the deal. If this deal will be approved, it would be one of the biggest takeovers of a private software maker in history.
More Information and Data for Approval
The US Department of Justice requested for more data and information regarding the proposed acquisition deal of Adobe Inc. to its startup rival Figma, as it signals to step up the purchase's antitrust scrutiny. The $20 billion acquisition would be the largest deal of a private software in history if this will be approved.
The second request means that the deal will not be proceeding to approval if Adobe and Figma did not fulfill the government's demands for at least 30 days. Either the department will be ending the whole review or both parties request an extension.
Adobe is considered the top maker of creative software for design professionals. Based on a report from Bloomberg, the company has been planning to expand its offerings on the web to make cater to non-professional subscribers and small businesses. By acquiring Figma, Adobe will be joining web-based companies that have descended through the years, including Canva Inc. and Lightricks Ltd.
Figma Chief Executive Officer stated in an interview with The Verge that this acquisition opened doors for the company. He added, "I think there is a huge opportunity to bring these capabilities from Adobe Creative Suite and Creative Cloud into Figma and utilize them more, and to make it so that you are able to go and somehow transition across these different creative modalities to have a more seamless way of working."
A report from Bloomberg earlier this month states that the deal could lead to a drawn-out review as the DOJ investigates the deal by regulators talking to customers and other rivals. This was by the department done to determine the outcome of the acquisition to its competitors.
Next Adobe CEO
The are rumors that Adobe Chief Executive Officer Shantanu Narayen is close to leaving the company, and CNBC reported that Adobe President of Digital Media Business David Wadhwani could be his successor. He spent more than 10 years of his career with the company over two separate stints, as he rejoined Adobe in 2021. He spent six years being an executive in other Silicon Valley companies.
Related Article : Adobe Buys Web-First Collaborative Platform Figma for $20 Billion in Cash and Stocks
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Written by Inno Flores
