Adobe buys Macromedia!

[Paisano]

What do you think the impact will be from Adobe's acquisition of our beloved Macromedia? Adobe Flash and DreamWeaver?
I love the way Macromedia does things and not so crazy about Adobe's methods. Will flash and dreamweaver suffer from this move? Will Adobe be stupid enough to merge these best of breed technologies with their inferior solutions? For example, Go Live can't hold a candle to DreamWeaver. Flash is in a class by itself.

What say you?

[pastthepresent]

Adobe to Acquire Macromedia in $3.4B Deal
AP - Associated Press

SAN JOSE, Calif. - Adobe Systems Inc., one of the world's largest providers of document-design software, will acquire Macromedia Inc. in an all-stock transaction valued at approximately $3.4 billion, the companies announced Monday.

Adobe's software includes the popular Acrobat and Photoshop program. San Francisco-based Macromedia makes the Dreamweaver and Flash web-design software.

Combining the two businesses, the companies said, will allow them to create more powerful software programs that can be used across multiple operating systems, which should pave the way for expansion into new markets.

Under terms of the deal, approved by the companies' boards of directors, Macromedia stockholders will receive 0.69 shares of Adobe common stock for every share of their Macromedia common stock. That will result in Macromedia stockholders owning about 18 percent of the combined company when the deal closes.

The transaction, contingent upon the approval of both companies' stockholders, is expected to be complete by the fall. It also requires the approval of federal regulators.

"Customers are calling for integrated software solutions that enable them to create, manage and deliver a wide range of compelling content and applications — from documents and images to audio and video," said Bruce Chizen, chief executive officer of Adobe.

Chizen will remain as chief executive of the combined company and Adobe's Shantanu Narayenb will continue as president and chief operating officer. Macromedia CEO Stephen Elop will join Adobe as president of worldwide field operations.

The companies said they are in the midst of developing "integration plans" that will build on their similarities. They made no mention of layoffs.

Adobe employs 3,700 people in offices around the world. It reported revenues of $1.295 billion for fiscal 2003.

"While we anticipate the integration team will identify opportunities for cost savings by the time the acquisition closes, the primary motivation for the two companies' joining is to continue to expand and grow our business into new markets," Chizen said.

[hothousegraphix]

One would hope that common sense prevails here and the FLASH and DREAMWEAVER titles stay on the developmental path Macromedia established. By the same token, the same should be said for the Photoshop, Illustrator, After Effects, and Acrobat titles as well.

I'm not sure how I feel about this. It's very possible each entity will provide this proposed merger a multitude of opportunities. However, the opposite is just as plausible - a software behemoth that forgets its origins and becomes disconnected with the customers whose very dollars built their companies.

I'm skeptical - but want to remain hopeful!

[MG315]

I liked how adobe focused more on print and macromedia on web. But adobe has "print" and "web" suites, so this will probably increase the value of the web one.

How will this effect the products?
Illustrator will kill Freehand
Dreamweaver will kill Golive
Flash will stay the same
I HOPE they don't do anything to fireworks (because I like it better than photoshop), but I'm sure Photoshop will kill it.


I'm glad I bought the Macromedia MX 2004 Suite a month ago when I got my powerbook. It's gonna be quite a few years before I upgrade, so they'll have time to work out the problems

[RazoRmedia]

I see a development monopoly happening meaning we can all expect to pay more for our products.

Adobe now will own the rights to the professional side of web development meaning higher prices but which may also mean that the door is now opened to cheaper / free alternatives.

[Orkar]

LiveMotion will rise again...

Maybe Adobe will support both interfaces for flash but they could ease the traditional Flash interface out over the next couple versions.

Who knows they might try integrating Director into the Flash product. Call it Flash Extreme or something.

Also they will change flash and Dreamweaver to integrate with the rest of the Adobe suite.

Be ready for changes... In about two years when they work the bugs of integration out.

[phantomflanflinger]

Remember what Adobe did to Sytrillium. Cool Edit RIP. I bet they'll do the same with Macromedia's packages inside a couple of years.

[asun2art]

The merger was a Microsoft buy-out shield.

VERY Smart move.

[phantomflanflinger]

Very cowardly then.

Monopoly regulations could stop a merger like that.