Morning Brew Daily Adobe Scraps $20B Deal with Figma & Why Apple is Suspending the Next Apple Watch
Dec 19, 2023
Adobe's ambitious $20 billion bid for Figma has collapsed due to regulatory challenges, raising questions about future mergers in tech. Meanwhile, geopolitical tensions are disrupting trade routes in the Red Sea, and Apple suspends sales of its newest Watch models over a patent dispute. In a major move, U.S. Steel will be sold to a Japanese competitor for over $14 billion. The hosts also explore the rise of Meta’s smart glasses and discuss significant penalties imposed on Southwest Airlines for operational failures, signaling changes in consumer protection.
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Adobe and Figma's Failed Merger
- Adobe's $20B acquisition of Figma failed due to regulatory pressure, marking a costly breakup.
- The deal, once a VC success story, crumbled under antitrust concerns, echoing Facebook's Instagram acquisition.
High Price and Future Competition
- Adobe's high price for Figma, double its last valuation, signaled desperation and hurt their stock initially.
- Regulators feared the merger would stifle future competition, not current, leading to its demise.
Red Sea Disruptions
- Houthi rebel attacks in the Red Sea are disrupting global shipping, forcing rerouting and increasing costs.
- This highlights one group's power to disrupt global trade and cause widespread supply chain issues.