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Adobe to buy Macromedia for $3.4 bil.

     
9:05 am on Apr 18, 2005 (gmt 0)

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From the Adobe site [adobe.com]:
Adobe Systems Incorporated (Nasdaq: ADBE) today announced a definitive agreement to acquire Macromedia (Nasdaq: MACR) in an all-stock transaction valued at approximately $3.4 billion.
9:16 am on Apr 18, 2005 (gmt 0)

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Good move Adobe!
9:24 am on Apr 18, 2005 (gmt 0)

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Oh no! That'll make Adobe the Microsoft of multimedia. What with Avid's acquisition of Pinnacle - it's getting to be a big boy's game. The writing's on the wall for companies like Canopus.
9:35 am on Apr 18, 2005 (gmt 0)

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Is this positive? I am uncertain ths move will be good for the designer and end user. I like MM products for some jobs and Adobe for others, will that choice dissapear? can we expect to see a massive amalgamation project?

Flash? Illustrator? Freehand? Photoshop? Indesign?

What will go where?

Whose next? Quark?

<added> This could be VERY big news for Flash designers. The one product with the potential to rival HTML - but needs whipping in shape - maybe a new pair of eyes might get the bottom of those frustrating issues: spidering, compatibility, usablility, validity, acessibility... </added>

[edited by: limbo at 9:45 am (utc) on April 18, 2005]

9:44 am on Apr 18, 2005 (gmt 0)

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Mergers - Mergers - Mergers and more to come. Good thing or bad thing who knows but its gonna happen this year for sure.

We hope they use talents from both companies and make something useful but the "corporate junk" could come out of it instead.

10:11 am on Apr 18, 2005 (gmt 0)

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It's the end of the world as we know it...
10:13 am on Apr 18, 2005 (gmt 0)

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I don't think this bodes well for ColdFusion... It doesn't seem to me to be in line with Adobe's core mission.

Maybe Adobe will part it out to someone like Oracle or Microsoft?

10:30 am on Apr 18, 2005 (gmt 0)

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I'm guessing this will be the end of "fireworks" ..and the cue for some price hikes...given that corel bought out jasc and have virtually ceased promoting paintshop pro ( the poor mans photoshop ) in favour of their "creative suite" ..this can only be a bad thing for web graphics ..

Too few people are starting to be in control of too many resources in this business ..

thank heavens for the gimp

[edited by: Leosghost at 10:34 am (utc) on April 18, 2005]

10:32 am on Apr 18, 2005 (gmt 0)

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Will any products be eliminated or phased out as a result of this transaction?
Adobe and Macromedia are committed to serving the needs of our combined customers. The companies are largely complementary, and thus the amount of competition between us is limited.

from here (PDF) [adobe.com]

i can envisage PhotoShop becoming a stand alone product, and some sort of hybrid of ImageReady and FireWorks being developed as a seperate product. Same for freehand/illustrator

ImageWorks? FireReady? CS3MX2005? ;)

11:53 am on Apr 18, 2005 (gmt 0)

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note to limbo:

Quark, I am most sad to say, is over. Adobe's InDesign is the new standard. (Look, Quark hasn't had a meaningful update in its software in years.)

12:13 pm on Apr 18, 2005 (gmt 0)

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There are many more mergers to come
12:21 pm on Apr 18, 2005 (gmt 0)

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There are many more mergers to come

This is not a merger, It is an aquisition. Adobe Systems has bought Macromedia.

12:22 pm on Apr 18, 2005 (gmt 0)

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Quark, I am most sad to say, is over.

I didn't want to risk hijacking this thread with a Quark vs. Indesign debate - so iv'e started one here [webmasterworld.com] ;)

12:25 pm on Apr 18, 2005 (gmt 0)

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This is very good news for the end users. Bundled together Adobe Photoshop and Macromedia Dreamweaver will be available at a lower price. For all you know they might have an inbuilt module for designers in Dreamweaver. Web designers sometimes use just 5-10 % of the capability of Photoshop and pay through their nose for a license.
12:31 pm on Apr 18, 2005 (gmt 0)

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Bundled together Adobe Photoshop and Macromedia Dreamweaver

why would they do this when they have both imageready and fireworks available?

12:39 pm on Apr 18, 2005 (gmt 0)

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Macromedia was the innovator (of the big boys) while Adobe sat on its hands during the start of the WYSIWYG web development boom. I believe Adobe's web development tools are still inferior to Macromedia and bet Adobe will play their current web products down. They will re-brand Dreamweaver, Fireworks, Flash and run with it. It will take some time getting used to 'Adobe Dreamweaver' for sure. IMHO
12:46 pm on Apr 18, 2005 (gmt 0)

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Are u kidding me? Tell me it ain't so.
I love photoshop for photos, but for the web I prefer fireworks. Let's not even mention GoLive vs. Dreamweaver.
Hope Adobe is greedy and keeps MM suite and it's products separate.
12:51 pm on Apr 18, 2005 (gmt 0)

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It will take some time getting used to 'Adobe Dreamweaver' for sure.

Yes. However, the cost of software will go down if the essentials are bundled together.

Maybe, we can get a all-in-one software:
- WYSIWYG Editor
- Image Retouching
+ all they need now is a FTP s/w to fix Dreamweavers "1 in 5 success rate" and thats it!

1:40 pm on Apr 18, 2005 (gmt 0)

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Merger vs. acquisition -whatever - my point was that there will be much more consolidation across this industry.

(I run a private equity publishing group in my day job - so I see this bubbling up all the time)

1:58 pm on Apr 18, 2005 (gmt 0)

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Merger vs. acquisition

I wasn't being a pedant (well a bit maybe) - but I think it was important to note that Adobe now control Macromedia and that they are not merged in partnership - it will have a large impact on MM products, but I wonder how much impact it will have on the current Adobe ones. CS is so powerful, if they can acheive that much depth with DW FH FW and the like, we may be in for some nice changes.

2:00 pm on Apr 18, 2005 (gmt 0)

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What a disaster - well, it's a good stimulus to move completely to a text editor for all dev.
2:06 pm on Apr 18, 2005 (gmt 0)

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I'm imagining better collaboration between Flash and Illustrator. I wonder what A will do with their interface design - will former MM products become more adobe-ish, or will A products get a MM makeover? Both companies excel at useability and interface design (MM probably a little moreso than A).

I wonder what is going to happen to Homesite, formerly known as Allaire Homesite, my favourite text editor? It is now owned by MM and shipped hidden on the Dreamweaver installation disc. I surely hope Adobe doesn't give up and squish everything into DW.

2:10 pm on Apr 18, 2005 (gmt 0)

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I liked what one of the major newspapers has said: "The combining of a digital document company and a multimedia company."

They just bought their way into multimedia by this writers interpretation. They just didn't have the product they needed, now they do. Make or buy, they choose to buy.

2:13 pm on Apr 18, 2005 (gmt 0)

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They just bought their way into multimedia

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]

2:19 pm on Apr 18, 2005 (gmt 0)

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oddsod do you have a breakdown of profits or sales of Adobe's individual products? (This would be a good post, side-by-side product comparison for both companies.)
2:26 pm on Apr 18, 2005 (gmt 0)

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Jon_King, I don't have a breakdown - that's commercially sensitive info. The figures I do have are from discussions I've had with senior Adobe staff who tried to get our company to OEM with them. But, I'm sure they can be obtained for a small fee from market intelligence sources. Once you know market share (and distie margins), you can work out gross revenue for individual products.
2:30 pm on Apr 18, 2005 (gmt 0)

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>>They've been in multimedia a long time.

While true, their Board must believe future growth is in the Macromedia product line. Man, they just paid 3.4B for a company that had sales last year of 370M, there must be some real gold nuggets in there.

2:52 pm on Apr 18, 2005 (gmt 0)

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real gold nuggets in there

Flash streaming video is just starting to come on in a big way. It is going to keep butt over real, ms media, and quicktime. Akamai's recent acquisition of Speedera is greatly going to speed this process.

Flash streaming video combined with Adobe's video editing tools is going to be huge.

2:56 pm on Apr 18, 2005 (gmt 0)

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Expect less innovation

I'd be amazed if either company could manage less innovation. They may be innovating on their new products, but the stalwarts of each company (Photoshop, Illustrator, Dreamweaver, Freehand) have been mired for years with bug fixes still waiting from two versions back.

The only good that can come of this is easier file transfers between Illustrator and Freehand, but why expect that when there is so much else left undone? :(

3:01 pm on Apr 18, 2005 (gmt 0)

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I think it's a win-win solution. MM's flag products have not updated significantly for some while.

[edited by: tntpower at 3:05 pm (utc) on April 18, 2005]

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