Adobe To Acquire Macromedia

[Suhit Gupta]

<div class='os_post_top_link'><a href='http://www.adobe.com/aboutadobe/invrelations/adobeandmacromedia.html' target='_blank'>http://www.adobe.com/aboutadobe/invrelations/adobeandmacromedia.html</a><br /><br /></div><i>"Adobe Systems Incorporated (Nasdaq: ADBE) has announced a definitive agreement to acquire Macromedia (Nasdaq: MACR) in an all-stock transaction valued at approximately $3.4 billion. Under the terms of the agreement, which has been approved by both boards of directors, Macromedia stockholders will receive, at a fixed exchange ratio, 0.69 shares of Adobe common stock for every share of Macromedia common stock in a tax-free exchange. Based on Adobe’s and Macromedia’s closing prices on Friday April 15, 2005, this represents a price of $41.86 per share of Macromedia common stock."</i><br /><br /><img src="http://www.digitalmediathoughts.com/images/adobemacromedia.jpg" /><br /><br />Wow, this news is huge. It not only shows Adobe's commitment to digital media, but also perhaps gives us a hint about what's in Adobe's future. I hope this doesn't turn out to be another HP. ;-) Do you think this is a wise investment?

[Daimhin]

Just makes me wonder what's going to happen to Freehand this time. Adobe had to dump it when it acquired Aldus. Now they are reaquiring it again.

[Kent Pribbernow]

I can sum my response in one word: "OMFG!!!!!!!!!"


Seriously, this REALLY concerns me. I am a freelance web designer, and my livelihood depends on Macromedia Studio MX. I can't help but wonder what Adobe might do to totally **** up this software, they may even kill it. Over the past few years Adobe has done its finest to cripple Macromedia software, even using a court battle to prevent Macromedia from using Floating palletes, a concept used on nearly every category of computing software for years.

My take: Say goodbye to Freehand, Fireworks, and Dreamweaver. Adobe will kill these apps in order to push their own inferior products like GoLive and Illustrator.

[Jason Eaton]

I can't say there is anything that keeps me from being worried. No little voice that tells me of a better product to come or some great new feature that isn't out there now.

What I do see is this, previously there were two companies that had similar products each with their own twists. Which one is better over the other is not that important, but at least each kept the other in check in terms of price (barely) and functionality.

Now I see a Goliath with no David in sight. The only time we see new stuff for the consumer will be when the conglomerate wants to sell more copies for the bottom line. Yes, that is what a business does but competition at least keeps it reasonable.

Give it a year or two and someone will fill the void and be the 'New' David but in the mean time, the lion will eat the sheep at its own choosing, and no, we aren't the lion.

[Filip Norrgard]

My take: Say goodbye to Freehand, Fireworks, and Dreamweaver. Adobe will kill these apps in order to push their own inferior products like GoLive and Illustrator.
:cry: *sniff* Same here, Adobe might be selling the most "pro-softwares" for image manipulators and creators out there, but Macromedia has somehow been excelling at making real, usable software for us regular guys (and gals)...

[Darius Wey]

I can sum my response in one word: "OMFG!!!!!!!!!"

Kent, that's four! :lol:

On a more serious note, I can understand your concern. There are three scenarios here, and it's hard to say which will be the chosen path in years to come.

(1) The Adobe and Macromedia names stay. Both sites remain separate, and the acquisition is merely "behind-the-scenes". Both companies' product lines remain the same, but each have tighter integration with the other companies' technologies. Now this is highly unlikely as Macromedia CEO, Stephen Elop, will have a new role at the combined company as President of Worldwide Field Operations. So it's more than likely that Macromedia will crumble in the coming months and become one with Adobe, much like HP-Compaq.

(2) Both companies merge - the next line of Adobe products become greatly improved upon. Macromedia technologies become heavily integrated into Adobe's current line. Dreamweaver, Freehand, and the like slowly die off, while GoLive, Illustrator, etc. begin to flourish. However, enhancement will come by way of the new technologies, and that's the main thing. You get the best of both worlds. It's only the name that will die off - not the quality of the products.

(3) Both companies merge - Adobe kills off what Macromedia have to offer. Only a few minor improvements are added into the Adobe product line, and Adobe use this platform as a stepping stone to dominate the e-doc and digital web media market.

It really is a guessing game from here on. Although based on responses so far, it seems as though (3) sums up the general consumer sentiment.

[Mr. MacinTiger]

Looks like Adobe must have been talking to Bill Gates and decided to act upon his philosophy of buying out the competition. :?

Not. good.

[sundown]

Dang it. Both companies make top of the line software. I'm concerned Adobe will kill off Dreamweaver and try to migrate me to use GoLive or something. I hope I'm wrong.

[Crocuta]

Seriously, this REALLY concerns me. I am a freelance web designer, and my livelihood depends on Macromedia Studio MX. I can't help but wonder what Adobe might do to totally f**k up this software, they may even kill it.
...
My take: Say goodbye to Freehand, Fireworks, and Dreamweaver. Adobe will kill these apps in order to push their own inferior products like GoLive and Illustrator.

Funny how we all make the most pessimistic assumptions when something like this happens. Until I read your post, my thoughts were that I'll be screwed because they'll probably kill GoLive! and replace it with Dreamweaver. Perversely, it makes me feel better to hear you worried about it the other way around. (I know, I know.... that's SO shallow!)

Dreamweaver seems (to me anyway) to have much higher market share and it's likely they bought the company for some technology they wanted and not just to eliminate them. (Not unheard of, but there's too much good stuff here to just buy and dump.) So I'm going to continue being nervous until we get some idea what their plans are.

All I can say is that, whatever they do with regard to specific programs, we were better off with two sets of products from two strong companies. Even if they keep both products alive, there'll be no more competition keeping prices down, spurring on innovation and so forth. One way or another, we're all screwed.

[James Fee]

This really isn't a big deal for most users. It's not like Macromedia has any digital imaging software and really doesn't sell to the consumers. Its all professional these days.

Beyond all that, it makes sense. While I used to use Freehand, I've been moved to Illustrator at work so I could care less these days about that. GoLive will probably be moved toward a PageMill-type product and the rest fits very nice into Adobe's stable. Dreamweaver is much more robust than GoLive is and since GoLive really wasn't an Adobe created product they probably don't care too much about it. This purchase is about two things, Flash and web creation.

[Suhit Gupta]

Hmm, maybe I am the only optimistic one here but I would hope that Adobe realizes the value of the various Macromedia products and not only leaves the current ones untouched but also continues to develop new technologies in the same vein and spirit that the existing products follow. I guess the only thing that bothers me is that most of the Adobe products are way over-priced and that is the same thing that might happen with the Macromedia stuff.

Suhit