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Adobe Buys Figma; Impact On The Creative Industry
Sept 21, 2022
In a move that will shake up the design world, Adobe has announced that it is all set to acquire Figma, one of its key rivals. This is a significant coup for Adobe, solidifying its position as the leading design software provider. Read on to learn more about the adobe buys figma news and its impact on the business community, particularly the creative industry.
The power of Figma
For years, Adobe has been the industry standard for creative software, with products like Photoshop and Illustrator being used by professionals across the globe. However, in recent years they have faced stiff competition from newer companies like Sketch and Figma.
Figma is best known for its vector graphic design tool, widely used by professionals in various industries. While Figma has often been used for web and app design, it can also be used for creating illustrations, logos, and other types of graphics.
In addition to its vector graphic capabilities, Figma also offers a suite of tools for prototyping and collaboration. As a result, Figma has become a powerful tool that can be used by designers of all experience levels.
Adobe Buys Figma; the rivalry comes to an end.
Last week, software giant Adobe announced that it was acquiring the popular design tool Figma for $20 billion. The move comes as a surprise to many in the industry, given Adobe’s history of criticism for its high prices and inflexible software.
However, it’s also a sign that the company is serious about making a play for the growing market for design tools.
THREAD: This morning we’re announcing that @Figma has entered into an agreement to be acquired by @Adobe !
With Figma, Adobe will gain a valuable new tool for its Creative Cloud suite of products, which millions of designers worldwide use. The acquisition is also a clear signal that Adobe is committed to investing in its design tools business.
With Figma, Adobe will be able to compete better against these challenges and continue to grow its business and solidify its position as the leader in the creative apps market.
“‘Together, Adobe and Figma will reimagine the future of creativity and productivity, accelerate creativity on the web, advance product design and inspire global communities of creators, designers, and developers,” Adobe said in the press release.
“The combined company will have a massive, fast-growing market opportunity and capabilities to drive significant value for customers, shareholders, and the industry.”
According to Adobe, the Figma platform would eventually include its own imaging, photography, illustration, video, 3D, and font capabilities.
Like many of you, I grew up using @Adobe software and it was a critical part of my personal creative journey. It is an incredible opportunity and honor to help Adobe build the next generation of creative tools. And I’m really excited about what’s ahead. (3/9)
Source: Twitter Thread from Figma’s CEO and co-founder Dylan Field
Although there has been no official announcement, it appears likely that Adobe will eventually incorporate Figma in its Creative Suite.
What Does Adobe’s Monopoly Mean for the industry?
Figma joins a long list of acquisitions made by Adobe in recent years, including Behance, an online portfolio platform for creatives, and Frame.io, a video production collaboration tool.
With each purchase, Adobe has sought to add new capabilities to its Creative Cloud platform and broaden its appeal to a wider range of customers.
The acquisition of Figma is likely to be met with some skepticism from rival developers. Affinity, the maker of its line of creative software, has already voiced concerns that the deal may stifle future innovation in the field of collaborative design tools.
“Any developers in that group who are acquired by Adobe will probably feel constrained because their goals will be redirected to benefit Adobe. That would ultimately limit the options accessible to creatives, according to Ashley Hewson, managing director of Affinity developer Serif, in a statement sent via email.
Nonetheless, Adobe’s longstanding commitment to the Creative Cloud platform make it well positioned to weather any potential challenges that may arise from the acquisition.
Although the acquisition isn’t strictly antitrust-related, regulators may nonetheless investigate it. It appears that Adobe holds a strong position in the market, and this acquisition would strengthen that dominance.
I’m not surprised that Adobe is acquiring Figma for $20B, nor that Wall Street doesn’t understand it and $ADBE stock is down more than $20B today. It’s a smart move for Adobe because it’s nearly impossible to make legacy software applications multi-user collaborative. Thread: 🧵
Source: Twitter Thread from @amaldorai of Anorak Ventures
What Adobe’s Acquisition of Figma Means for Creatives
Adobe buys Figma and it makes sense. Though UI has been somewhat of an outlier, it predominates in many other areas of design. Its own Adobe XD is lagging behind a variety of other tools and hasn’t been able to become well-known like other Adobe products.
Many people preferred Figma’s independence and view Adobe as a monopolistic behemoth that will want to increase its prices.
A single editor’s subscription to Figma’s professional plan, which starts at $12 per month, is much less expensive than one to Adobe Creative Cloud.
Even Photoshop was acquired by the firm, which has made a number of acquisitions. This makes Adobe’s acquisition of Figma all the more worrisome for designers because it means the company will continue to consolidate the power of creative apps in one place despite having only a few prominent competitors Adobe.
Figma says that access will continue to be free for individuals in education and that there are “currently” no plans to change its pricing.
With this acquisition, Adobe will gain access to Figma’s extensive library of plugins and integrations and its user base of over two million designers. Moreover, the move by Adobe signals a shift in the company’s strategy regarding web-based design tools.
While this is not the end of the story, it is the closing of a chapter, and I want to thank all the Figmates (past and present), community members and customers who helped us reach this milestone. You bet on us before there was a reason to and we will always be grateful. (8/9)
Source: Twitter Thread from Figma’s CEO and co-founder Dylan Field
Up until now, Adobe has lagged behind its rivals in this area, but with Figma, it now has a powerful platform that it can use to catch up. Likely, Adobe will eventually integrate Figma into its Creative Suite products, giving users a one-stop shop for all their design needs.
For now, Adobe seems content to let Figma continue operating as an independent entity. This is likely because the software still has a lot of maturing to do before it would be ready to be integrated into Adobe’s existing products. In the meantime, creatives can continue to use Figma without fear of it being discontinued or absorbed into another product.
There’s no doubt that Adobe is interested in Figma’s capabilities. The software boasts an impressive array of features, including real-time collaboration and web-based editing.
However, it’s still too early to say whether Adobe plans to integrate Figma into its Creative Suite or keep it as a standalone product.
This could be a major advantage for Adobe, making its products more appealing to those who want to use them for web-based design projects. Only time will tell how successful this strategy will be, but it’s an interesting development to keep an eye on.
Sara Khalid Digital Marketing Specialist
Sara Khalid is an experienced content marketing professional at Xoopah, a business growth platform for small businesses.
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