Lina Khan, former chair of the Federal Trade Commission, has celebrated Figma’s successful IPO, highlighting the importance of allowing startups to grow independently and generate value. Figma, a $20 billion deal for Adobe to acquire, fell through due to regulatory scrutiny from the European Commission and the U.K. Competition and Markets Authority. Khan, who was FTC chair at the time, led the agency to challenge Big Tech on startup acquisitions, leading to “reverse acqui-hires” where companies hired key team members and licensed technology instead of acquiring startups outright. Despite her aggressive stance, Khan defended her approach, stating that only a tiny percentage of deals received a second look and that founders would benefit from a world with multiple suitors. Although she resigned from the FTC, her comments on the Figma IPO are seen as a vindication for her approach, calling it a win for employees, investors, innovation, and the public.
Lina Khan argues that the Figma IPO serves as a clear example of the M&A scrutiny.
