Adobe to acquire Macromedia (1 Viewer)

[AsyLum]

http://www.abc.net.au/news/newsitems/200504/s1348167.htm

Adobe to acquire Macromedia

Adobe Systems has announced plans to buy rival software firm Macromedia for about $US3.4 billion, a move aiming to propel the group into digital markets that include mobile phones.

Under the terms of the deal, which has been approved by both boards of directors, Macromedia stockholders will receive 0.69 shares of Adobe common stock for every share of Macromedia common stock in a tax-free exchange.

Adobe, know for its Photoshop photo editing program and Acrobat document software, will expand its offerings with Macromedia, which develops design tools for building "rich media" or interactive applications.

The San Francisco-based Macromedia claims the top spot in the market for website design, with about one-third of the market, followed by Microsoft.

It also produces the Flash and Shockwave software used in many games and Internet applications.

Adobe said it is aiming at "an industry-defining technology platform" with the combination of its PDF (portable document format) software and Macromedia's flagship Flash multimedia platform.

"This combination is all about growth and it would certainly disappoint me if we can't grow faster than other software companies," Adobe chief executive Bruce Chizen said on a conference call with analysts and investors.

He will become chief executive officer of the combined group.

Adobe expects to see some cost savings as part of the deal, but Mr Chizen declined to to offer any specifics.

With Macromedia, Adobe is reaching an estimated 3 million web developers and can expect the size of its current market of graphic artists and marketing executives to expand by 60 per cent, Fulcrum Global Partners analyst Jamie Friedman said.

"In the end, it's the same idea ... to get those products on a computer or a set-top box or a gaming console or a cell phone," he said.

"The companies have grown up together."

Bringing the two companies together was a desire to fuel expansion into new markets, rather than cost savings, Adobe president Shatanu Narayen said,

Combined, the merger partners hope to dominate the potentially hot market for providing multimedia software for cell phones and other mobile devices.

"For us the real reason to do the deal was strategic," Mr Narayen said.

Macromedia's Dreamweaver program is the leading software for website design, ahead of a rival offering from Microsoft, and its Flash animation software is a favourite of designers and other creative professionals.

Adobe shares fell 5.89 or nearly 10 per cent to 54.77 while Macromedia rose 3.27 or 9.8 per cent to 36.72 in closing trade.

- AFP

Wow, now that may or may not be a good thing :S

 

[MedNez]

Damnit!

So much for Macromedia being a good independant company. I'm more inclined to think this is going to be a bad thing ...

 

[RCMasterAA]

But has Adobe put a foot wrong yet? I think they're still cool.

 

[AsyLum]

We'll have to see, i mean buying out similar things is one thing, but this is a completely oppositionary, and highly lucrative, end of the market.

Flash has been proprietarily Macromedia, and Adobe has taken the still graphics sector.

Should make for a decent suite of tools if they can effectively merge the two.

Adobe Dreamweaver.

 

[Slidey]

I can see the the potential. Let's hope use that potential.

 

[ogmzergrush]

I can't see this being good myself, but we'll have to wait and see.

 

[Pharaohsam]

hey does this mean they will be getting rid of fireworks and impoasing photshop...i dunno how to use photshop..i ujust finished learning how to use fireworks...............

 

[AsyLum]

They serve two completely different purposes.....

 

[ogmzergrush]

Yeah, Adobe Reader is also replacing Flash.

 

[Pharaohsam]

oi....fireworks and photshop are both image editing programs

 

[AsyLum]

Calm down big fella.

They serve different ends of the market, fireworks aimed at those doing web graphics and interfaces, whereas photoshop has always been touted as a professional graphics editing program.

 

[HotShot]

Dont Like It

I Prefer If They Specialised, Means That Adobe Will Have More Power, Ie Higher Prices Reduces Competition And So On. Generally Not Good. On The Hand Could Be Cheaper Because Of Combining Two Resources They Make Some Cuts And Work More Produtively Combining Suites.

 

[AsyLum]

Learn how to type without caps mate.