SLTechnology News&Howtos › IT Information ›

The US Department of Justice is ready to start an antitrust investigation as Adobe buys Figma for $20 billion

Shulou Source: shulou.com Published: 2023-11-24 11:31:40 10月01日 Update

CTOnews.com, Nov. 3 (Reuters)-the U.S. Justice Department is preparing an investigation into Adobe's $20 billion acquisition of Figma, according to Reuters, citing four people familiar with the matter and documents they have seen. Figma and the Justice Department did not immediately respond to requests for comment.

In recent weeks, the DoJ has been in contact with clients and competitors of Adobe and Figma, as well as venture capital investors in Figma, the report said. "Today's Adobe and Figma are not meaningful competitors," Adobe said in an emailed statement.

The company added: "We are in fruitful discussions with regulators to ensure that they have a full understanding of the merger and are expected to complete the transaction in 2023."

According to reports, Adobe's acquisition of Figma for $20 billion has raised concerns among investors about the company's high price for a cloud-based platform, which is popular among technology companies such as Zoom Video Communications and Airbnb.

Politico said the exact timing of the investigation was not clear, adding that the companies were still under review by law.

CTOnews.com has reported that Adobe said in a statement that sales for the current fiscal year will be about $19.2 billion. Profits excluding some projects will be as high as $15.45 per share in the period ending November 2023. On average, analysts expect the company to earn $15.53 a share on revenue of $19.8 billion.

The company also confirmed that its fourth-quarter sales and earnings (excluding some items) are expected to be $3.50 per share, or about $4.5 billion. Shares rose about 3.2% in after-hours trading after the news.

The lower-than-expected fiscal year forecast for Adobe's digital media division, including its iconic creative software, reinforced the argument that the acquisition of Figma "shows a sense of urgency to counter the slowing growth of the creative cloud business", the media wrote.