Long-expected marriage of Adobe and Macromedia comes true

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Tuesday April 19, 09:26

Long-expected marriage of Adobe and Macromedia comes true

(by Brigitta Zulfitzler)

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Long-expected marriage of Adobe and Macromedia comes true

Yesterday Silicon Valley software maker Adobe Systems announced that it plans to buy Macromedia (MACR ) for $3.4 billion in stock. The long expected deal aroused the only question why it took so long to handle.

All analysts agree on the point that the two businesses’ merger is totally reasonable provided with similar goals and interests.

"In 10 years of software research this is probably the easiest deal I’ve ever seen in terms of explaining why it’s going on," says Gene Munster, an analyst at Piper Jaffray.

This is remarkable that the two companies are selling to the same customers practically without any overlap in products. Adobe gets $1.7 billion annual revenue from selling its popular Photoshop and Illustrator products while Macromedia provides Web-design software Dreamweaver and Flash to the same clients.

Still, many analysts believe that the main reason of the delay was Macromedia’s recent performance in the mobile platform. Its popular Flash software, used for video and animation, has already been installed on 20 million handsets. In addition, the San Francisco-based Macromedia recently cut new agreements for Flash to be installed on Samsung’s and Nokia’s new smart phones.

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Read the related news and articles:
19 Apr 2005 04:37 AM	DEUTSCHE BANK RAISED ADOBE SYSTEMS TO "BUY" FROM "HOLD"
02 Feb 2005 02:15 AM	Adobe raised its forecasts on fiscal first quarter

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