Adobe-Macromedia Merger: A Shift in Digital Media Landscape

The acquisition of Macromedia by Adobe Systems has significant implications for the digital media industry. By acquiring Macromedia's developer base and combining Macromedia's Flash products with Adobe's Portable Document Format (PDF) and Acrobat Reader software, Adobe aims to create a robust platform for rich media and Internet applications. This strategic move pushes Adobe into areas where Microsoft has shown interest, particularly in dynamic forms and graphics automation. The merged company will have a large portfolio of widely used desktop software, including Photoshop, Illustrator, and Dreamweaver.

Key Takeaways:

• Adobe's acquisition of Macromedia brings a base of ColdFusion developers to the company, expanding its capabilities in digital media.
• The combined company's strategy will focus on creating rich media and Internet applications using Flash, a robust development platform.
• Adobe will enter competition with Microsoft in areas such as dynamic forms and graphics automation through its Avalon graphics system for Longhorn.
• The merger will result in reduced competition between Adobe's Dreamweaver and Macromedia's GoLive, as well as Freehand and Illustrator.
• Developers are waiting to see which products will remain available after the merger, as some Adobe and Macromedia products will compete directly.

Statistics:

• Adobe will have a portfolio of desktop software widely used by creative professionals, including Photoshop, Illustrator, and Dreamweaver.
• Macromedia's Flash platform will be a key component of Adobe's combined company strategy.
• Dynamic forms that permit users to create, alter, and share information online are expected to be one of the initial products of the merged companies.
• Graphics automation, a technology also developed by Microsoft for Longhorn, is also on the table for Adobe's combined company.

Sources:

• Adobe Systems, as quoted by [Source]
• Analyst, unnamed, in an interview
• Microsoft Public Relations