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Adobe Abandons Web-Design Product to Rival Figma Following Failed Acquisition Deal

Adobe abandons plans for web design product to rival Figma after failed acquisition deal. XD, Adobe's competing program, put in "maintenance mode" following collapse of Figma acquisition. Figma outperformed XD in recent years, prompting Adobe's decision to discontinue development.

In a surprising turn of events, Adobe Inc. has announced its decision to discontinue its efforts to develop a web design product that would have directly competed with Figma Inc. This decision comes after the collapse of Adobe's proposed $20 billion acquisition of Figma, a startup known for its innovative app and website interface design capabilities.


When Adobe initially agreed to acquire Figma, it put its own competing program, XD, in "maintenance mode," halting the release of new features and individual sales. However, the deal to purchase Figma faced regulatory challenges and ultimately fell apart in December. Since then, Adobe has remained tight-lipped about the future of XD or any potential plans to develop another rival product.


A spokesperson for Adobe stated, "We have no plans to further invest in it," referring to XD. This announcement marks a significant shift in Adobe's strategy, as Figma had gained considerable traction in recent years, outperforming XD in the web design market.


According to Dana Rao, General Counsel at Adobe, XD generated only US$17 million in standalone annual recurring revenue and employed a team of just 19 developers in 2022. These figures highlight the challenges XD faced in competing with Figma's robust and user-friendly design platform.


With the collapse of the Figma acquisition, Adobe now finds itself with billions of dollars that were earmarked for the deal. This has led some Wall Street analysts to speculate whether Adobe will explore the possibility of developing another competing product design application. The spokesperson for Adobe expressed openness to exploring partnerships with other companies in the industry, suggesting that collaboration may be on the horizon.


The spokesperson emphasized Adobe's commitment to imaging, photography, design, web, animation, and 3D, as well as its ongoing integration of artificial intelligence features and its proprietary Firefly model into its suite of creative software.

 
  • Adobe abandons plans for web design product to rival Figma after failed acquisition deal.

  • XD, Adobe's competing program, put in "maintenance mode" following collapse of Figma acquisition.

  • Figma outperformed XD in recent years, prompting Adobe's decision to discontinue development.


Source: YAHOO

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