Lina Khan Acknowledges Success of Figma's IPO

In a moment of triumph, Lina Khan, the former chair of the FTC, took to X on Friday to express her satisfaction with Figma's impressive IPO performance.

Khan highlighted this occasion as evidence of the value in allowing startups to prosper independently rather than having them subsumed by larger corporations. 'This represents a significant win for all stakeholders involved—employees, investors, and the broader public,' she noted.

Figma's public debut on Thursday saw it valued at $19.3 billion and its stock skyrocketing 250% beyond its initial price, ultimately valuing the company at approximately $68 billion—a substantial gain for shareholders.

Backdrop of the Adobe-Figma Merger

The spectacular IPO occurred shortly after Adobe's attempt to acquire Figma was abandoned under mounting regulatory scrutiny from both European and American authorities. This scrutiny led to the cancellation of the $20 billion deal in December 2023.

Khan was instrumental in this regulatory push, drawing significant criticism from Silicon Valley for her rigorous antitrust measures focusing on Big Tech.

Industry Reactions

While Figma's growth is celebrated, some industry experts offer differing perspectives. Dan Ives, an analyst at Wedbush Securities, credited Figma's success to its innovative strategies, independent of the FTC's or Khan's involvement.

Louis Lehot, a partner at Foley & Lardner who specializes in mergers and venture capital, reflected on the IPO positively but noted a curious mix of emotions—suggesting that while independence has its merits, the Adobe-Figma merger presented a lost opportunity for greater combined value.

He further noted, 'Independent growth or strategic acquisition both hold potential for contributing to advancement and public benefit; the optimal approach often depends on specific circumstances.'

Requests for comments from representatives of both Figma and Khan were not immediately answered.