AI was everywhere at Adobe’s annual conference. Figma is no longer mentioned.

The last few days have been all about AI at Adobe Max, the company’s annual highlight. For example, the new generation FireFly tool has been launched and work is underway to improve the discoverability of AI-generated content. AI is even enabled in videos. The only thing that isn’t mentioned at all? Figma.

Let’s look back: At the end of September 2022, Adobe will announce that it wants to take over industry competitor Figma for $20 billion. Despite Adobe’s claim that there will still be a free version of Figma, the UK and European countries are pushing back against the acquisition with numerous surveys. So far, neither has given the green light, thirteen months after the initial takeover announcement.

Last year, Figma CEO Dylan Field and Adobe CSO Scott Belsky proudly stood on stage during Adobe Max. This year the word Figma will not be spoken anywhere.

Surfing the AI ​​hype

A Wells Fargo analyst tells Bloomberg that the Figma acquisition is no longer as urgent due to its new suite of AI models. “When the Figma acquisition was announced, it was clear to everyone that Adobe had limited growth and needed something new. With AI this is now less of a problem because it now has enough resources of its own.”

CEO Shantanu Narayen said in an investor briefing on Tuesday that Figma would not be discussed because there were so many internal innovations to highlight. “The lack of discussion does not mean that there are problems related to the acquisition.”

Dana Rao, General Counsel at Adobe: “If you want to acquire a company, it’s pretty frustrating that 13 months later you’re still waiting to see if it’s allowed or not.”

Deadline March 2024

The takeover must be completed by the end of March 2024. If that fails, Adobe will have to pay Figma a termination fee of $1 billion. The high purchase price of 20 billion US dollars was always viewed critically by investors. A week after the acquisition was announced, a quarter of Adobe’s market value went up in smoke.

According to the Wells Fargo analyst, more and more investors are hoping that the deal will not go through. Thanks to numerous AI innovations, the share has already increased by 65 percent this year. “I am convinced that the acquisition will have a positive impact on Adobe once completed.” At the same time, he is clear that the focus today and in the near future will continue to be on AI and not on Figma.