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Old 04-18-2005, 04:22 PM   #1
gmcrone's Avatar
Join Date: May 2004
Location: Canada
Posts: 519

It was announced today that Adobe and Macromedia will merge in a 3.4 billion dollar deal.

There has been a persisten rumor going around for years that Adobe wanted to buy Macromedia and always proved false. Well this time it isn't.

Details can be found at Adobe's and Macromedia's websites

What do you think this will mean for the future of Dreamweaver???

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Old 04-19-2005, 02:37 PM   #2
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Join Date: Dec 2003
Posts: 9,730

Both website point to the same press release:

Adobe also has a FAQ:

Adobe aquiring Macromedia..
Many open questions now, especially when it comes to product range
Freehand versus Illustrator?
Golive versus Dreamweaver?
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Old 04-22-2005, 09:02 PM   #3
Join Date: Apr 2005
Posts: 458

lol its been fun since the news broke!

8ball and Longhorn will be rleased as planned this from Macromedia blog which is up to date this week:

This is from some link or other:
*Adobe-Macromedia alliance takes fight to Microsof, 'Battle for the browser' begins...

With its $3.4bn acquisition of Macromedia, Adobe Systems is buying into a crucial battle to shape the next generation of web application development.

Adobe, which built its name on the PDF format for printable digital documents, has long struggled to make an impact in the purely digital realm, where Macromedia has its roots.

Now, with Macromedia's Flash animation and application-development software in its portfolio, Adobe has positioned itself as a primary competitor against Microsoft on the one hand and open standards on the other in building new platforms for web applications.

"What's taking shape is the ultimate battle for the browser," said Paul Colton, CEO of Xamlon, a company that provides tools for creating applications that run in Microsoft's .Net framework. The company this month added the capability of letting its developers output Flash movies. "This [merger] play is about gaining dominance in the browser applications market," Colton said. "The reach of PDF and Flash already go a long way, and the combination of those two will be very intense."

From Adobe's perspective, the acquisition of Macromedia's tools for authoring multimedia content also bolsters its standing in the business market. The combined company can offer a fuller suite of cross-platform products for building document-oriented applications and 'rich media' web applications. It can also offer Macromedia's collaboration products.

"The enterprise market is absolutely what this is about," said Robert Markham, principal analyst at Forrester Research. "It's really broadening Adobe's capability to compete in the enterprise as opposed to having off-the-shelf packages."

The audience for Adobe and Macromedia's software consists of so-called creative professionals, such as web designers and graphics artists. But the companies are also seeking to expand their business with corporate technology departments.

Adobe's 'life cycle' business for document management software, which can tie into back-end computing systems at corporations, last year totaled about $100m.

"Enterprises and enterprise developers want to provide a complete set of development tools to create rich interactive experiences and personalised content that tie into transaction systems," Shantanu Narayen, president and chief operating officer of Adobe, told silicon.com's sister site CNET News.com on Monday.

While Adobe, with its PDF and Photoshop software, has generally held its own so far in the battle against Microsoft, analysts say the biggest pitched battle between the companies will come as software providers vie to provide the platform of choice for next-generation web-based application development.

In this area, Macromedia has a good head start with Flash. Microsoft's forthcoming Longhorn version of the Windows operating system, which has a graphics engine called Avalon that's considered a major contender, despite being late, while Adobe hasn't had a hand in the game until its Macromedia acquisition.

"It's not that Microsoft is going to specifically target Macromedia and Adobe," said Burton Group analyst Peter O'Kelly. "But we've seen blurring boundaries between traditional documents and applications and multimedia, so it's not surprising that Microsoft should wind up with an architectural model that's similar to what Macromedia has been proposing all along.

Today, analysts expect the upcoming presentation environment in Windows which includes an XML-based language called XAML (Extensible Application Markup Language) to be able to do many of the things that Macromedia's Flash and Adobe's Acrobat software do. Microsoft's tools are optimised for Windows, while Adobe and Macromedia have been committed to a more diverse desktop environment, including the Mac OS and now Linux.

Longhorn looms large among potential competitors in the market for online application platform providers. Others include: Flash combined with Macromedia's Flex server software; Sun Microsystems' J2SE; a platform under open-source development by Laszlo Systems; and the collection of established web standards recently dubbed 'Ajax'. IBM's Workplace initiative also offers a Java-driven approach for building 'rich client' applications.

The deal between Adobe and Macromedia was first conceived several years ago, after a period in which the two companies were at loggerheads.

In the late 1990s, the companies started encroaching on each other's turf more and more. To compete with Macromedia's high-end Dreamweaver web-authoring software, Adobe launched its ill-fated GoLive title. To compete with Adobe's dominant Illustrator software for graphics professionals, Macromedia introduced Freehand and Fireworks.

Adobe also tried to invade Macromedia's dominion by throwing its weight behind the World Wide Web Consortium's (W3C) Scalable Vector Graphics recommendation, conceived as a standard Flash alternative. More recently, Macromedia took at nibble at PDF with its Flash Paper offering.

The companies hadn't begun as direct rivals. Adobe emerged from the world of print, and Macromedia from the purely digital realm of CD-ROM and then web content creation.

And by the middle of 2001, it was clear to both companies that their efforts to compete with one another were stalling. The relationship between two culturally different companies had devolved into more of a petty rivalry than a strategically sound battle. As they struggled to compete in the marketplace, the companies took each other to court over patents.

Meanwhile, Microsoft was already talking about Longhorn, hinting that the software would include "an advanced presentation environment".

"After 9/11, we both realized that being enemies didn't make sense," Adobe CEO Bruce Chizen said in a conference call on Monday, referring to his discussions with Macromedia's then-CEO Rob Burgess. "We were not longer competing."

No longer competing with each other, that is. In fact, Adobe and Macromedia's peace pact had less to do with their own sense of corporate or technological comity in the wake of a national tragedy than with serious if not existential common threats, particularly Microsoft.

"When I think about competitors, there's only one I really worry about," Chizen said in an interview a year ago. "Microsoft is the competitor, and it's the one that keeps me up at night."

*Photoshop and Flash: Potent Combo

The only surprise about the Apr.18 announcement that Silicon Valley software maker Adobe Systems (NASDAQ: ADBE - news) (ADBE) plans to buy Macromedia Advertisement

(MACR) for $3.4 billion in stock was how long it took to happenRumors of an Adobe-Macromedia (NASDAQ: MACR - news) deal have been circulating for the better part of this decade because analysts always thought the two graphic-design software specialists could make a powerful combination to take on the likes of Microsoft (NASDAQ: MSFT - news) (MSFT) and just about anyone else who ventured onto their creative turf. "In 10 years of software research this is probably the easiest deal I've ever seen in terms of explaining why it's going on," says Gene Munster, an analyst at Piper Jaffray.

STICKER SHOCK. The two businesses have the same goal: Break out of their successful little niches, sell publishing software to bigger companies, and duplicate their enviable success on the desktop computer in the growing market for so-called smart phones and other wireless devices.

More than half of Adobe's $1.7 billion in annual revenue come from selling its popular Photoshop and Illustrator products to creative types, most notably photographers and graphics designers. Macromedia makes 80% of its $370 million in annual revenue selling Web-design software Dreamweaver and Flash to the same clientele. In fact, nearly every PC sold today ships with the Flash software installed. Yet the two companies, both growing more than 20% per year, are selling to the same customers with barely any overlap in products -- a rarity in techdom.

If Adobe CEO Bruce Chizen manages the merging of the two companies well, analysts say the deal has little not to like, except its cost. Investors were initially put off by it -- Adobe shares lost 9.7%, to close at $54.77, on Apr. 18, while Macromedia shares gained 9.8%, to close at $36.72.

MOBILE OPPORTUNITIES. So what took so long to make this marriage a reality? Chizen said in an interview with BusinessWeek Online that it was a matter of timing (see BW Online, 4/19/05, "Macromedia and Adobe: Finally One"). He admits to talking with Macromedia executives about merging for years, but Adobe had been too focused on building its intelligent-documents business, anchored by the ubiquitous Acrobat software, which allows documents to be protected, collaborated on, and sent over the Web.

In the first quarter, Acrobat sales were up 42%, helping boost Adobe's overall revenues 12%, to a record $472.8 million. Profits were up 23%, to $151.9 million. "In a short period of time we've both been able to accomplish a lot," Chizen says.

But many analysts suspect the icing on the cake for Adobe was Macromedia's recent strides in the mobile handset business. Its popular Flash software, used for video and animation, has already been installed on 20 million handsets, and the San Francisco company just inked new agreements for Flash to be installed on Samsung's and Nokia (Helsinki: news) 's (NOK) new smart phones.

It's a small business today, but a lucrative one. These handset makers are paying Macromedia as much as 50 cents per phone for the software. With more than 700 million cell phones expected to ship this year -- half of them with enough memory to use Flash -- those numbers could get big fast.

A BARGAIN? While Adobe has also made some deals to get its Acrobat software on cell phones, Macromedia's Flash is arguably a more compelling sell to telecommunications carriers because it helps them hawk more video, games, and other entertainment. In the PC world, Flash is already the dominant program for designing these applications. Acrobat could be a valuable tool for reviewing documents on a smart phone, but analysts expect that more money can be made delivering games, video, and animation.

Macromedia is a few deals away from having the same kind of ubiquity on handsets that it enjoys on PCs. That's why, despite the 25% premium Adobe is paying for Macromedia, some analysts think it's a bargain. "It's obvious what Adobe gets out of this. I was surprised Macromedia didn't play harder to get," says Martin Pyykkonen, senior analyst at Janco Partners.

That said, the mobile market is a small but growing piece of the pie right now for both outfits. While analysts expected the segment to make up a quarter of Macromedia's $370 million in annual revenues within two years, it may take five or six years to make that big a mark on the much bigger $2.5 billion combined company.

TRICKY BALANCE. In the meantime, there's still plenty of growth in Adobe's document-sharing and publishing business, a more recent addition to the traditional creative software. Chizen is slowly building a sales force that's closing multimillion-dollar deals with big businesses and governments, like Germany's post office and Britain's equivalent of the Food & Drug Administration, the Medicines & Healthcare Products Regulator Agency.

Adobe is one of the few software companies, like Microsoft and Symantec (SYMC), that's proving it can sell to consumers, small businesses, and big enterprises. Macromedia also has tried to sell versions of its software to bigger information-technology departments, but at a quarter of Adobe's size, it has fewer resources.

The documents business and the mobile-handset market could easily push growth into the 30% range, roughly double the expansion of both companies' core businesses. But it will be a tricky balancing act to keep those sectors growing fast while management takes on the integration.

SOFTWARE POWERHOUSE. Chizen says it's too early to detail much of the combined concern's product roadmap and is mum on the merger's layoff implications. But Macromedia will keep its hip San Francisco offices and, execs hope, its innovative culture. "Hey, that's why we bought Macromedia," says Chizen.

But if he can make the pieces fit the way many think they can, Adobe could be a software powerhouse for years to come.

There were lots more like this lolol

Shareholders did very well out of the merger.

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Old 06-20-2005, 08:20 AM   #4
Join Date: Jun 2005
Location: Philadelpha, PA
Posts: 26

I find it quite funny that Macromedia calls it Joining Forces while Adobe call it an Acquisition.

I think some good might actually come out of this. They both make some quality products.
Tom Milewski
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Old 06-20-2005, 09:14 AM   #5
Join Date: Apr 2005
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It was sure funny the day the news broke at Macromedia..lmaoooo

Some very 'funny' messages posted to the list ! it will by all accounts be sometime before any changes take place top the software. most people I talk to are worried about Fireworks, Dreamweaver, also Coldfusion.

We'll have to see what happens. Longhorn will be out in beta early August.

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