Adobe Inc. is trying to create a web design product to rival Figma Inc. after the startup's proposed $20 billion acquisition fell through. Will finish.
When it agreed to buy Figma, which helps users create app and website interfaces, Adobe put its competing program XD in “maintenance mode,” stopping to launch new features or sell it individually. The Figma acquisition deal fell through in December under regulatory pressure, and the creative software giant hasn't announced whether it will resurrect XD or try to build another competitor.
“We have no plans to invest further in this,” a spokesperson for XD said Tuesday.
Figma has beaten Adobe's XD in recent years. Adobe General Counsel Dana Rao said in 2022 that XD generated only $17 million a year in standalone annual recurring revenue and had 19 developers on staff.
With billions of dollars going toward Figma, some Wall Street analysts wondered if Adobe was trying to create another competing product design app. The spokesperson said the company is open to exploring partnerships with other companies in the space.
“We are focused on opportunities in imaging, photography, design, web, animation and 3D, as well as Express and Firefly,” the spokesperson said. Adobe is integrating artificial intelligence features and its proprietary Firefly model into its creative software suite.
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