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Figma’s IPO Revives Debate Over Big Tech Deal-Making—and Lina Khan Is Weighing In

By  |  August 3, 2025

The collapse of Adobe’s $20 billion bid for Figma in 2023 was seen by many as a regulatory blockade. But now that Figma has gone public—with a strong IPO to match—some are calling it a case study in the upside of letting startups chart their own course.

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    One of those voices is Lina Khan, the former chair of the Federal Trade Commission (FTC), who weighed in Friday on X, the platform formerly known as Twitter. In a post linking to an article about Figma’s market debut, Khan framed the moment as evidence that independent growth can yield enormous public and private value. She called it “a win for employees, investors, innovation, and the public.”

    As TechCrunch reports, Khan’s comments refer back to the scuttled Adobe acquisition, which faced heavy scrutiny from regulators in the U.S., U.K., and EU. Though Adobe attributed the decision to withdraw to regulatory uncertainty in Europe, TechCrunch notes that the FTC’s investigation under Khan was a central pressure point. At the time, U.S. regulators expressed concern that allowing Adobe to absorb a rising competitor could suppress competition in the design software space.

    Khan, a Biden appointee who stepped down at the beginning of the current administration, made antitrust action against tech giants a defining feature of her tenure. Under her leadership, the FTC adopted a more aggressive posture toward mergers and acquisitions, particularly those involving startups with the potential to disrupt entrenched players.

    Related: Adobe Defies UK Regulators Remedies in $20 Billion Figma Acquisition

    That stance wasn’t without its critics. Some in the industry—and in financial circles—argued that such scrutiny discouraged innovation by making exits harder for founders. Others, including analysts like Dan Ives of Wedbush Securities, have claimed that Figma’s rise is a result of its own merits, not regulatory intervention. “Figma is a massive success, but it’s because of the company’s innovative growth and not due to the FTC and [Khan],” Ives told Business Insider.

    Still, Khan’s view—as shared Friday—suggests she sees Figma’s IPO as a validation of her broader strategy: that blocking acquisitions can unlock long-term value by giving startups the chance to mature into full-fledged competitors.

    The post-regulatory path Figma took may not be a universal blueprint. But, per TechCrunch, it certainly reopens the conversation about whether aggressive antitrust enforcement stifles opportunity—or clears space for it to thrive.

    Source: TechCrunch