In a surprising turn of events, Lina Khan, the former chair of the Federal Trade Commission (FTC), has publicly celebrated Figma's successful IPO valued at an astonishing $68 billion. Khan, known for her stringent antitrust policies, pointed to the design software company's independent public offering as a clear vindication of her efforts to scrutinize mergers and acquisitions in the tech industry.
Khan's comments come in the wake of Figma's decision to abandon a proposed $20 billion acquisition by Adobe in 2022, a deal that faced intense regulatory pushback under her leadership at the FTC. She argued that allowing startups like Figma to grow into independently successful entities, rather than being absorbed by larger corporations, fosters innovation and competition in the market.
The former FTC chair shared her thoughts on social media, stating that Figma's blockbuster IPO demonstrates the importance of protecting startup independence. Her stance has reignited debates over the role of antitrust enforcement in shaping the tech landscape, with supporters praising her for safeguarding competition and critics in Silicon Valley arguing that such scrutiny can stifle growth and liquidity for startups.
Figma's journey to becoming a publicly traded company at a valuation more than three times the proposed Adobe deal has been hailed as a landmark moment for the SaaS (Software as a Service) sector. The company's focus on design innovation and integration of AI technologies has positioned it as a leader, further validating Khan's belief that independent growth can yield greater long-term benefits.
While Khan no longer leads the FTC, her legacy of aggressive antitrust enforcement continues to influence policy discussions. The Figma IPO serves as a case study for her approach, with many analysts noting that her intervention may have paved the way for one of the biggest tech IPOs of 2025.
As the tech industry watches the ripple effects of this development, Khan's remarks underscore a broader message: rigorous M&A scrutiny can create space for new giants to emerge, challenging the dominance of established players and reshaping the future of innovation.
Alfred Lee
