US DOJ prepares to investigate Adobe’s $20 billion Figma deal – Reuters

Nov 2 (Reuters) – The U.S. Justice Department is preparing to open an investigation into Adobe Inc. (ADBE.O) Figma takeover for $20 billion, Politico reported Wednesday, citing four people with knowledge of the matter and a document he viewed.

The DOJ has contacted Adobe and Figma customers and competitors, as well as Figma’s venture capitalists, in recent weeks, according to the report.

“Adobe and Figma today are not significant competitors,” Adobe said in an emailed statement.

“We are engaged in productive discussions with regulators to ensure they have a full understanding of the combination and we expect to close the transaction in 2023,” the company added.

Figma and the DOJ did not immediately respond to Reuters requests for comment.

Adobe’s $20 billion bid for Figma had raised concerns among investors about the high price the company was paying for the cloud-based design platform that is wildly popular among tech companies, including including Zoom Video Communications. (ZM.O) and Airbnb Inc. (ABNB.O).

The exact timing of the investigation is unclear, Politico said, adding that the companies are still within the legally mandated review period.

Reporting by Deborah Sophia in Bengaluru; Editing by Anil D’Silva

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