In a surprising turn of events, Lina Khan, former chair of the Federal Trade Commission (FTC), has hailed the recent Figma IPO as a validation of her rigorous approach to merger and acquisition (M&A) scrutiny. Khan, known for her tough stance on Big Tech deals, emphasized that Figma's successful public offering demonstrates the importance of allowing startups to flourish independently rather than being absorbed by larger corporations.
Figma, a leading design software company, went public with a staggering market cap of $45 billion, as reported by TechCrunch. This milestone comes after the collapse of a proposed $20 billion acquisition by Adobe in 2023, a deal that faced significant regulatory pushback under Khan's leadership at the FTC. Her intervention was criticized by some in Silicon Valley as stifling innovation, but the IPO's success has shifted the narrative.
Khan argued that preventing such mergers protects competition and fosters an environment where startups like Figma can grow into independent powerhouses. She noted that this outcome benefits not only the startup ecosystem but also investors and consumers who gain from a more diverse market. The Figma IPO has reignited debates over the role of regulatory oversight in tech deal-making.
Critics of Khan's policies, however, remain skeptical. Some industry leaders argue that blocking acquisitions can limit liquidity options for founders and early investors, potentially discouraging entrepreneurship. Yet, Figma's ability to achieve a blockbuster IPO suggests that alternative paths to success are viable under the right conditions.
The broader implications of this event are being closely watched. As Khan steps away from her role at the FTC, her legacy of advocating for antitrust enforcement is underscored by cases like Figma. Many are now questioning whether her approach will continue to influence future regulatory decisions in the tech sector.
For now, Figma stands as a symbol of what Khan describes as the value of independent growth. As the debate over Big Tech acquisitions continues, this IPO may serve as a benchmark for evaluating the balance between regulation and innovation in the years to come.
Maria Lourdes
