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angelmb · Apr 18, 2005, 03:32 AM

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.

The combination of Adobe and Macromedia strengthens our mission of helping people and organizations communicate better. Through the combination of our powerful development, authoring and collaboration tools � and the complementary functionality of PDF and Flash � we have the opportunity to drive an industry-defining technology platform that delivers compelling, rich content and applications across a wide range of devices and operating systems.

By combining the passion and creativity of two leading-edge companies, we will continue driving innovations that are changing the ways people everywhere are experiencing and interacting with information.

more info here:

http://www.adobe.com/aboutadobe/invr...acromedia.html

moodymonster · Apr 18, 2005, 03:47 AM

bloody hell

wonder what this will mean for Freehand.

I've already seen some of the stuff the next Flash will do, with Adobe on board (PDF tech etc), who knows where it will go to

This also means that a large portion of creative apps are made by one company

goMac · Apr 18, 2005, 03:54 AM

effgee · Apr 18, 2005, 03:59 AM

Originally Posted by moodymonster

... This also means that a large portion of creative apps are made by one company

Which will (most likely) also mean ...

even less competition ...
even more useless bloatware ...
even less innovation ...
even higher prices ...

... son of a bitch

Randman · Apr 18, 2005, 04:04 AM

Microsoftization.

Weyland-Yutani · Apr 18, 2005, 04:09 AM

Originally Posted by effgee

Which will (most likely) also mean ...

even less competition ...
even more useless bloatware ...
even less innovation ...
even higher prices ...

... son of a bitch

Yes, this is most displeasing news fot the user/consumer. The competition between Adobe and Macromedia was not stellar - perhaps they only really clashed where Illustrator met Freehand and where Dreamweaver met GoLive.

Macromedia was Adobe's only rival and competitor and innovation will certainly suffer. Macromedia owns a lot of technology and patents that will be a valuable asset to Adobe for sure and will help stiffle any sprouting competition.

Unless anyone is expecting Quark to provide competition to Adobe

Big Mac · Apr 18, 2005, 04:10 AM

Speechless. Apple really should have bought one of them when it had the chance.

Weyland-Yutani · Apr 18, 2005, 04:14 AM

Originally Posted by Big Mac

Speechless. Apple really should have bought one of them when it had the chance.

I'm sure Steve Jobs is plotting something right now. Right now and for the forseeable future Apple is a far faster growing company than Adobe/Macromedia

Seriously though: Is there no monopoly control for such mergers? Macromedia/Adobe covers just about 100% of design and web-publishing. No companies should be allowed to merge to form a monopoly entity. ( <-- my personal opinion)

Goldfinger · Apr 18, 2005, 04:16 AM

Oh dear. Goodbye Dreamweaver, hello crappy GoLive.

Big Mac · Apr 18, 2005, 04:20 AM

Originally Posted by Goldfinger

Oh dear. Goodbye Dreamweaver, hello crappy GoLive.

Or perhaps Golive will be discontinued in favor of DW.

Goldfinger · Apr 18, 2005, 04:20 AM

We can only hope.

Link · 04:29 AM

Originally Posted by effgee

Which will (most likely) also mean ...

even less competition ...
even more useless bloatware ...
even less innovation ...
even higher prices ...

... son of a bitch

I share the same feelings.

Let's look at this from a different angle: Did you realize that means Adobe will own 'control' over flash, shockwave, and all that?

Weyland-Yutani · Apr 18, 2005, 04:28 AM

I have to ask: Is there anyone who is really pleased this merger is going through?

(and isn't a stockholder in either company)

Hawkeye_a · Apr 18, 2005, 04:29 AM

Originally Posted by Randman

Microsoftization.

You said it dude. thats what crossed my mind. So basically Desktop Publishing has one major player now.... insane

Link · Apr 18, 2005, 04:32 AM

Originally Posted by Hawkeye_a

You said it dude. thats what crossed my mind. So basically Desktop Publishing has one major player now.... insane

Yep, at this rate pretty much everything on the internet will be made on programs created by one company in the near future :| That kinda makes me sick, I can imagine the advertising now...

"Adobe WebSuite. Make your graphics in photoshop, your dynamic content in flash, and put it all together with dreamweaver! All for the value price of $1995!"

Big Mac · Apr 18, 2005, 04:36 AM

I am surprised that Adobe has the financial muscle to pull off the acquisition.

Millennium · Apr 18, 2005, 04:38 AM

Originally Posted by Weyland-Yutani

Seriously though: Is there no monopoly control for such mergers?[/i]

There's antitrust stuff, certainly, such that the merger must be approved before it can take place. That said, they've let some awfully shady mergers through in recent years -and not just under Bush, either- so I don't think they can be counted on.

Athens · Apr 18, 2005, 04:39 AM

Everything will one day be owned by one person LOL, look at internet hotel sites. 95% of all of them are owned by Expedia.

Link · Apr 18, 2005, 04:41 AM

Expedia is owned by microsoft

Athens · Apr 18, 2005, 04:43 AM

Originally Posted by Link

Expedia is owned by microsoft

Yup and Expedia owns Hotels.com. And Hotels.com and Expedia operated under a dozen different internet booking sites as well. Basically when you book a hotel online now no matter what company it is your using Expedia.

Weyland-Yutani · Apr 18, 2005, 04:49 AM

Originally Posted by Millennium

There's antitrust stuff, certainly, such that the merger must be approved before it can take place. That said, they've let some awfully shady mergers through in recent years -and not just under Bush, either- so I don't think they can be counted on.

Well those antitrust laws aren't really reliable in the EU either so I'm not used to counting on them. Anywhere in the world.

It seems almost random to me who gets slapped with the laws and who gets away with monopoly mergers. One can hope I guess.

Madrag · Apr 18, 2005, 05:03 AM

I'm so sad...

I need to start looking for a different profession

Freehand will most definatelly disappear...
I doubt Dreamweaver will be spared...
I have some doubts about adobe keeping director...

I would prefer if the merger was in the opposite way (keeping photoshop, of course)...

effgee · Apr 18, 2005, 05:20 AM

Here, I finished up the re-branding campaign ...

Originally Posted by by some marketing floozie

Now introducing: The all-new (speak: "re-packaged") Macrobe� (alternatively: "Adodia�") CSS� ("CrapSuiteSquared"), consisting of:

Macrobe� Photoworks
Macrobe� Freelustrator
Macrobe� InPage
Macrobe� GoWeaver
Macrobe� Flacrobat
... Plus, the exclusive, brand-spanking-new, Macrobe� R.O.A.C.H.� (Retina-scanning Online Activation Control Hermaphrodite)*

*- Macrobe� CSS� requires activation each time you wish to use any of the included applications. Usage patterns as well as personal data (including but not restricted to the name of your pet and prefered brand of bathroom tissue) will be stored on our servers and shared with members of the C.R.A.P. network (Council for Re-distribution of All Personal data) to provide you with exclusive offers that will make your professional life even more difficult. Extended use of Macrobe� R.O.A.C.H.� may liquify your retina. Exercise caution.

Argh - this crap just makes me want to puke ...

Madrag · Apr 18, 2005, 05:25 AM

Although this is a very sad day, I laughed like hell with effgee's re-branding campaig!!!

exca1ibur · Apr 18, 2005, 05:29 AM

I just hope Adobe kills off Flash. Thats the only thing I hope for with the buyout/merger. Everything else I could care less about. TextWrangler works fine for my web development along with Photoshop and Illustrator.

Big Mac · Apr 18, 2005, 05:33 AM

Originally Posted by exca1ibur

I just hope Adobe kills off Flash. Thats the only thing I hope for with the buyout/merger. Everything else I could care less about. TextWrangler works fine for my web development along with Photoshop and Illustrator.

Uh huh. I imagine Flash represents much of the impetus for this acquisition.

Athens · Apr 18, 2005, 05:46 AM

Adobe isnt going to kill off anything, at least not for a while. As long as the brands and products are successful they will keep it, even the ones that overlap. As long as GoLive makes money it will be around, as long as Dreamweaver makes money it will be around. Adobe will prob keep the brand and names intact as well, so Dreamweaver prob dont change to Adobe Dreamweave but stay Macromedia Dreamweaver just like hotels.com is still hotels.com even though Expedia owns it now.

effgee · Apr 18, 2005, 05:57 AM

Originally Posted by Athens

Adobe isnt going to kill off anything, ...

LOL - I'm giving you the benfit of the doubt and call you an "optimist". Two development/marketing/q+a/etc teams doing exactly the same thing - that being the case with Illustrator/Freehand as well as ImageReady/Fireworks - how long do you think they're going to be around? Three months, maybe six? Nine at most. Those two will be the first products to be "enhanced" by tossing the respective source code in a blender, recompiling the whole shebang and firing 50% of the combined staff.

Dreamweaver/GoLive is going to be next in line for "significant enhancement" (speak: "eleventy billion new features that make development of interactive content for mobile applications easier") because "the market" requires these features (or not, but who cares anyway) ...

If I were a Macromedia employee working on the development of any of the apps above, I'd be spending today updating my resume and getting ready to schedule a whole lotta interviews ...

Big Mac · Apr 18, 2005, 05:58 AM

Athens, you really believe they will maintain separate code bases with separate development teams on overlapping products for any duration greater than the short term?

Athens · Apr 18, 2005, 06:06 AM

Originally Posted by Big Mac

Athens, you really believe they will maintain separate code bases with separate development teams on overlapping products for any duration greater than the short term?

As long as the market supports it, if they both remain profitable. What Adobe will prob do is make Dreamweaver and other products work together better with Adobe products, but I cant see them just dumping them. Adobe must know there are loyal Macromedia users and loyal Adobe users that will stick with there products and resent them if they made drastic changes. I can point out a couple more examples, Best Buy now owns Futureshop, they didnt dump the store or relable it. They built Best Buy stores, some right beside Futureshop stores and run them as seperate brands but carry almost the exact same stuff. HP bought compaq, they still sell computers under the compaq brand and hp brand.

Apple Pro Underwear · Apr 18, 2005, 06:10 AM

there is a chance this may turn awesome

as of late, all their programs have been bloatware.

so maybe now that they are together they can incorporate each other's greatest hits.

delete go live for dreamweaver
delete freehand for illustrator
delete imageready for fireworks

perhaps one plugin that will have pdf/flash/shockwave together instead of seperate?

Madrag · Apr 18, 2005, 06:11 AM

that's the excuse they give to employees, but in the end they'll kill some products and layouff MACR's R&D for those prods...

that's sad but that's the reality...

I wish I were as optimist as you are Athens...

Madrag · Apr 18, 2005, 06:13 AM

I think freehand is more powerfull than illustrator, and it makes me sad that the 'fight' between the two has come to an end (and freehand lost, with a kick in the balls).

Athens · Apr 18, 2005, 06:20 AM

Originally Posted by Madrag

that's the excuse they give to employees, but in the end they'll kill some products and layouff MACR's R&D for those prods...

that's sad but that's the reality...

I wish I were as optimist as you are Athens...

A year from now I will be bumping this thread from the pits to gloat how right I was

Madrag · Apr 18, 2005, 06:25 AM

I hope you do that!, that would be great news for us users...

Apple Pro Underwear · Apr 18, 2005, 06:26 AM

Originally Posted by Madrag

I think freehand is more powerfull than illustrator, and it makes me sad that the 'fight' between the two has come to an end (and freehand lost, with a kick in the balls).

freehand was never in the fight regardless of how good it was. i actually don't even like illustrator but you gotta use the program thats most compatible with peeps you work with and printers. (illustrator does do the job more or less)

Athens · Apr 18, 2005, 06:29 AM

Wow its already been 6 years since Adobe bought GoLive Cyberstudio. I remmeber that as if it was yesterday.

Zimphire · Apr 18, 2005, 06:32 AM

I love Adobe, but this isn't good.

Athens · Apr 18, 2005, 06:34 AM

Originally Posted by Zimphire

I love Adobe, but this isn't good.

Maybe Apple will buy Adobe next LOL

Zimphire · Apr 18, 2005, 06:36 AM

That really wouldn't be good.

I like them separate.

Having said that, I would rather Apple get them than MS.

LaGow · Apr 18, 2005, 06:48 AM

There is hope. Ten years (or so) ago when Adobe bought Aldus Corp., they weren't allowed to aquire FreeHand. It was subsequently sold to Macromedia.

The same antitrust issues are at play here. The question is if the Bush Administration's FTC sees competitiveness as a worthy goal for regulating aquisitions. Given their lassaiz-faire attitudes towards corporate behavior (except when it embarrasses them), there is reason for pessimism. On the other hand, it seems like they wouldn't be doing their jobs, I think, if they didn't consider history in this case.

Madrag · Apr 18, 2005, 06:48 AM

Originally Posted by Zimphire

Having said that, I would rather Apple get them than MS.

I second that!!

mishap · Apr 18, 2005, 07:08 AM

Look on the bright side... maybe Flash will finally get a good interface now!

waxcrash · Apr 18, 2005, 07:17 AM

This royally sucks.

ManOfSteal · Apr 18, 2005, 07:28 AM

Mergers and acquisitions bring those we care about closer together, or tear us apart. Let us hope that the latter does not prevail in this situation.

[/sugar_coated with a tad-bit of wdlove thrown in]

Big Mac · Apr 18, 2005, 07:29 AM

Originally Posted by Zimphire

That really wouldn't be good.

I like them separate.

Having said that, I would rather Apple get them than MS.

If Apple had the ability to do so, acquiring Adobe would be the greatest boost to the platform ever seen. Apple would, in a single stroke, make the Mac the de facto standard for creative professionals. If only that were to come to pass, Apple would have the opportunity to make significant inroads in market share.

Randman · Apr 18, 2005, 07:30 AM

I guess more activation codes are on the way, eh?

pooka · Apr 18, 2005, 07:32 AM

let me be the first to say that I can not wait to see what mutant offspring result from this merger and am looking forward to introducing them into my workflow. I can only imagine the quality of the mac ports now..

pman68 · Apr 18, 2005, 08:03 AM

Originally Posted by Apple Pro Underwear

freehand was never in the fight regardless of how good it was. i actually don't even like illustrator but you gotta use the program thats most compatible with peeps you work with and printers. (illustrator does do the job more or less)

What was the difference (to a printer) between an Illustrator EPS and a Freehand EPS? Answer: none. That's why I chose Freehand. So did most of the ADVANCED designers!

mitchell_pgh · Apr 18, 2005, 08:08 AM

I would find it hilarious if Apple purchased Adobe now.

I feel the #1 reason Adobe did it is because it hasn't broken in to the "server" market. The web publishing systems are really catching on for Macromedia. And Adobe doesn't have anything in that area other than GoLive.