Adobe shares plumeted something like 16% when it happened? (sorry can't find the details right now). The market really thought they overpaid apparently.

Yeah, don't worry... it bounced back today. I'd imagine it might have been the initial reaction until the traders etc knew exactly what it meant. Once they did, catch it on the bounce and make more money. Who knows, but ultimately, it will head back up and exceed where it left off. As markets do.

It comes down to the fact that it was ok to buy figma but not for the price they paid. That got investors worried.

I don't know anything about Figma, but did find a couple of articles about the negative reactions to the acquisition.

https://www.forbes.com/sites/alexkonrad/2022/09/20/adobe-historic-retention-package-figma-ceo/?sh=2bca4b1b7926

https://www.cnbc.com/2022/09/15/adobe-to-acquire-design-platform-figma-for-20-billion.html

https://seekingalpha.com/article/4542006-why-adobe-buying-figma-for-20b

Here is a rundown of Figma competitors (always helps to see something of the other players in a given area)

https://www.softwarepundit.com/design/figma-competitors-alternatives


Adobe's press release

https://news.adobe.com/news/news-details/2022/Adobe-to-Acquire-Figma/default.aspx

Thanks, some interesting reads here.

In addition to rumors that the US justice department is planning to sue to stop the Figma acquisition, Bloomberg says that the EU will launch a probe into it as well.

https://finance.yahoo.com/news/adobe-20-billion-figma-deal-190613345.html

"The purchase is a massive bet that more creative work will be done by small businesses and everyday users on the web, a market that Figma has rapidly seized. While Adobe has introduced less-expensive, streamlined products for that audience, most of its offerings are still heavyweight programs aimed at specialists."

https://www.forbes.com/sites/brianbushard/2023/07/24/tech-merger-crackdown-adobe-faces-eu-probe-over-20-billion-purchase-of-figma-report-says/?sh=74600166e69a

"Regulators in the European Union will launch a probe into Adobe�s $20 billion purchase of design start-up Figma, Bloomberg reported on Monday, marking the latest antitrust investigation into the massive merger as regulators continue to crack down on a series of multi-billion-dollar tech acquisitions, including against Amazon and Google."

https://www.reuters.com/markets/deals/adobes-figma-deal-faces-full-scale-eu-antitrust-probe-sources-say-2023-07-24/
https://seekingalpha.com/news/3990272-adobe-wont-offer-remedies-address-eu-concerns-over-figma-deal
https://www.benzinga.com/news/large-cap/23/07/33353200/adobes-game-changing-20-billion-figma-acquisition-under-global-regulatory-microscope

Edited 7 Aug to add link to Reuters story that the EU confirmed what Reuter's reported in July

https://www.reuters.com/markets/deals/adobes-figma-deal-may-restrict-competition-eu-antitrust-regulators-say-2023-08-07/

Adobe's statement: "We remain confident in the merits of the case as Figma's product design is an adjacency to Adobe's core creative products and Adobe has no meaningful plans to compete in the product design space"