Adobe abandons plans to compete with Figma in web-design product following failed deal
Following the failure of its proposed $20 billion acquisition of Figma Inc., Adobe Inc. has decided to discontinue its endeavor to develop a web design product that would compete with Figma Inc.
After Adobe agreed to buy Figma, which helps users design user interfaces for apps and websites, Adobe put its rival program XD into “maintenance mode,” ceasing to launch new features or sell them separately. The deal to buy Figma fell apart under regulatory pressure in December, and the creative software giant hasn’t said whether it will revive XD or try to build another competitor.
“We have no plans to invest more in it,” a spokesperson told XD on Tuesday.
Figma had defeated Adobe’s XD in recent years. In 2022, Adobe’s general counsel Dana Rao said XD would only make about $17 million a year in standalone annual recurring revenue and employ 19 developers.
When the billions of dollars that would have gone into Figma were freed up, some Wall Street analysts wondered if Adobe would try to build another competing product design app. A spokesman said the company is open to exploring partnerships with other companies in the space.
“We are focused on the opportunities we have in imaging, photography, design, web, animation and 3D, as well as Express and Firefly,” the spokesperson said. Adobe has integrated artificial intelligence features and its own Firefly model into its creative software portfolio.
