From Nasdaq:



Adobe has freed up resources of $6 billion after cancelling the $20 billion acquisition of Figma due to concerns from UK and EU regulators about antitrust approvals and potential monopoly by Adobe. This move is expected to be beneficial for Adobe, and will give it more room for share repurchases, as well as allowing for more investment in AI innovations, specifically in its Creative Cloud platform. The termination of the Figma merger is also expected to enhance Adobe’s financial performance, as evidenced by its currently strong momentum. Despite the cancellation, the company still holds a favorable price-consensus-chart, and it is projected to achieve revenue and earnings growth in 2024. Adobe’s shares have gained 74.6% over a year, outperforming the Zacks Computer and Technology sector’s rally of 49.3% as well as the S&P 500 index’s gain of 25.6%. Currently, Adobe carries a Zacks Rank #3 (Hold).
Investors are optimistic about the stock, and the company is witnessing solid momentum with launch of generative AI models. Despite the cancellation of the Figma merger, the future looks promising for Adobe as it navigates renewed investment and growth.



Original: Adobe (ADBE) Cancels Figma Buyout, Frees Up $6 Billion in Cash