Adobe gives up on web-design product to rival Figma after deal collapse
Adobe’s decision to stop investing in its XD design tool after regulators blocked its $20B acquisition of rival Figma is widely seen as proof that Adobe struggled to compete on product quality and tried instead to buy the market leader. Commenters argue this leaves Figma in an even stronger, quasi-monopolistic position in UI/UX design, raising concerns about future pricing and innovation despite short‑term relief that Adobe will not control it. The thread also branches into broader critiques of acquisition-driven competition, shareholder‑value pressures that push healthy companies to sell, and Adobe’s long history of abandoning or stagnating once-promising creative tools.
Figma–Adobe deal outcome and implications
- Many see the failed acquisition and Adobe dropping XD as proof Figma didn’t need to sell and is viable as a standalone business.
- The $20B offer is viewed as far above estimated value (~$8–9B), making it almost impossible for shareholders and many employees to refuse.
- The $1B breakup fee is seen as a significant windfall Figma can now use to further entrench its position.
- Some expect Figma to expand beyond UI design into areas like photo/video editing or even print.
Competition, antitrust, and acquisitions
- Strong sentiment that the attempted acquisition was primarily an attempt to buy a competitor Adobe couldn’t beat.
- Many argue blocking the deal was good for consumers and market health, though some note the irony that XD’s death still reduces choice.
- Debate over whether buying competitors is inherently bad vs a normal outcome of markets; several link this to broader antitrust philosophy (US vs EU approaches).
Adobe XD and Adobe’s product strategy
- XD is widely described as “half-baked” and behind Sketch and especially Figma; some users, however, praise it as fast, focused, and easy to teach.
- Multiple comments see Adobe as historically poor at web and product design tools, often acquiring and then killing or neglecting products (Fireworks, Freehand, ImageReady, Dreamweaver, Flash).
- Some speculate Adobe learned from Figma during due diligence and will restart with a new solution, possibly AI-driven; others think XD’s team morale and staffing were fatally damaged during the deal period.
User impact, pricing, and lock‑in
- Designers who relied on XD via existing Creative Cloud subscriptions are frustrated they now must pay separately for Figma while still needing Adobe tools.
- Concern that with XD gone, Figma may gain monopoly-like power and eventually worsen pricing or free-tier generosity.
- Lock‑in via proprietary formats and integrated product families (Adobe, Figma) is a recurring worry; open formats and offline-first tools (e.g., Sketch, Affinity) are praised.
Shareholders, fiduciary duty, and company purpose
- Long subthread debates whether boards are legally required to maximize shareholder value and how fiduciary duty actually works.
- Some argue current norms push leaders to accept lucrative buyouts even when they’d prefer long‑term independence, contributing to consolidation and “enshittification.”