They've been in multimedia a long time. Maybe you guys haven't noticed but Photoshop and Acrobat are a small part of the Adobe portfolio. The biggest chunk of profits come from video products like Premiere, After Effects, Audition etc. They had almost no competition in some sectors there. The puny Edius and the (now threatened) Pinnacle Edition were no match; the only serious competition came from Avid.
True, as webmasters our focus tends to be on the products we use - like Flash, Acrobat etc., but these are not the be all and end all of the Adobe-Macromedia existence.
Also, don't forget Adobe bought XML software maker [news.com.com], Syntrillium [findarticles.com], OKYZ [macmerc.com], Jave based workflow company -QLink [today.java.net], GoLive (Cyberstudio) [macobserver.com], and others like Ceneca and a major sound editing software company whose name escapes me at present. OK, not all those acquisitions were in the past year but they're becoming a Microsoft of multimedia, as I said earlier, and that's too much power in one company. Expect less innovation and more monetisation of existing product portfolios i.e. you and me pay more.
[edited by: oddsod at 2:24 pm (utc) on April 18, 2005]