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 company’s $20 billion acquisition of startup Figma.
A case could come as soon as next month, Bloomberg reported, citing an unnamed source.
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 has said Figma would generate over $400 million in annualized recurring revenue in 2022.
Source: https://www.cnbc.com/2023/02/23/adobe-stock-slips-on-report-saying-doj-plans-suit-to-block-figma-deal.html
As an investor, I think this might be good news. If acquisition is blocked, Adobe does not have to spend $20 billion to acquire Figma.
Is it good time to buy? Thoughts?
submitted by /u/Horanis
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