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Adobe buys Macromedia
Adobe and Macromedia are set to become one, thanks to a $3.4 billion all-stock deal. Both companies separately have made a commitment to further the distribution of documents and media to the wireless sector, but see a greater opportunity to serve the segment as a combined entity. Earlier this month, Abode introduced an updated version of its GoLive. GoLive Creative Suite 2 is an authoring tool that enables designers and developers to create, publish, manage and update content that adapts easily to handheld devices. GoLive CS2 is designed to ensure content can go mobile. "We are starting to publicly demonstrate our leadership ability in the [wireless] space," Adobe's senior product manager, George Arriola, told Wireless Week in a recent interview. Arriola said Adobe is just beginning to communicate its mobile vision and the company has a wide range of activity happening with device manufacturers and carriers into 2005 and 2006. The company already has ties with some of the wireless sector's biggest players, including Samsung, Sony Ericsson, Nokia and Symbian. Macromedia is no stranger to wireless, either. In February of this year, Macromedia inked a licensing deal with Nokia to enable the use of its Macromedia Flash technology for use in Nokia's Series 60 Platform. Macromedia began investing in the mobile space two or three years ago. In October 2004, NTT DoCoMo inked a deal to bring Macromedia's Flash Lite, the version of Macromedia Flash Player that enables mass-market mobile phone users to have rich interactive experiences, to its i-mode licensing companies. NTT DoCoMo also is currently working with Adobe. "Ultimately both Adobe and Macromedia both have superb cross platform technologies and if they can exploit the ubiquity of the PDF reader and Flash, and really emphasize the 'any client anywhere' theme they will be a in a formidable position to dictate industry directions for the future," said Ovum Senior Analyst Bola Rotibi in a research note. Under the deal's terms, Macromedia shareholders will receive 0.69 shares of Adobe common stock for every share of Macromedia common stock they hold, which translates to roughly $41.86 per share, based on closing per-share prices on April 15. Once the transaction is complete, Macromedia shareholders will own roughly 18 percent of the new company. Adobe's Bruce Chizen will remain as CEO and Shantanu Narayen will retain his post as president and COO of Adobe. Macromedia's president and COO, Stephen Elop, will join Adobe as president of worldwide field operations. The transaction, which already has been approved by both company boards, is expected to close this fall.