WOW... Adobe to Acquire Macromedia in $3.4B Deal

[teedubya]

Being a Graphic Artist, I find this unreal. Im speechless at this moment.

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Adobe to Acquire Macromedia in $3.4B Deal
Monday April 18, 7:26 am ET

Adobe to Acquire Macromedia in an All-Stock Transaction Valued at $3.4 Billion
SAN JOSE, Calif. (AP) -- Adobe Systems Inc., one of the world's largest providers of document-design software, will acquire Macromedia Inc. in an all-stock transaction valued at approximately $3.4 billion, the companies announced Monday. Adobe's software includes the popular Acrobat and Photoshop program.

San Francisco-based Macromedia makes the Dreamweaver and Flash web-design software. Combining the two businesses, the companies said, will allow them to create more powerful software programs that can be used across multiple operating systems, which should pave the way for expansion into new markets. Under terms of the deal, approved by the companies' boards of directors, Macromedia stockholders will receive 0.69 shares of Adobe common stock for every share of their Macromedia common stock. That will result in Macromedia stockholders owning about 18 percent of the combined company when the deal closes.

The transaction, contingent upon the approval of both companies' stockholders, is expected to be complete by the fall. It also requires the approval of federal regulators. "Customers are calling for integrated software solutions that enable them to create, manage and deliver a wide range of compelling content and applications -- from documents and images to audio and video," said Bruce Chizen, chief executive officer of Adobe. Chizen will remain as chief executive of the combined company and Adobe's Shantanu Narayenb will continue as president and chief operating officer. Macromedia CEO Stephen Elop will join Adobe as president of worldwide field operations.

The companies said they are in the midst of developing "integration plans" that will build on their similarities. They made no mention of layoffs. Adobe employs 3,700 people in offices around the world. It reported revenues of $1.295 billion for fiscal 2003.

"While we anticipate the integration team will identify opportunities for cost savings by the time the acquisition closes, the primary motivation for the two companies' joining is to continue to expand and grow our business into new markets," Chizen said.

[HC_Chief]

Kewl.
Makes sense - I don't know a single web designer/graphic artist that doesn't use an app developed by both companies.

I wonder if Photoshop 8 will include Flash tools?

Ali - check out CGNetworks some time (if you haven't already) - it's my favorite CG site.

Also check out ZBrush - it is AMAZING! Takes some time to get used to the controls and interface, but it comes with a nice tutorial and MAN, is it powerful.

[NewChief]

Interesting. I wonder if they'll get rid of Freehand? That would be cool. My wife is supposed to use Freehand at her new job, but she doesn't know it. She wants to use PS or Illustrator instead.

[jcroft]

This is both scary and cool at the same time. Integration of PDF and SVG with Flash would be awesome. However, the thought of some of Macromedia's terrific web design apps (Fireworks, Dreamweaver) getting scrapped in favor of Adobe's inferior competitors (ImageReady, GoLive) is frightening.

Also, this means that Adobe has virtually zero competition in the creative design marketplace. I'm a big Adobe fan and always have been, but a monopoly has to scare you a bit, no matter who it is.

[HC_Chief]

Originally Posted by jcroft

Also, this means that Adobe has virtually zero competition in the creative design marketplace. I'm a big Adobe fan and always have been, but a monopoly has to scare you a bit, no matter who it is.

?!
There are tons of competing apps out there. The only Adobe product that is THE app - the one that pretty much all graphic designer uses, is Photoshop.

[Wrasse]

This should be interesting...

I'm mainly an Adobe/Corel guy when it comes to graphic design. As for web programming...I prefer notepad or some of my own creations so I haven't had the chance to use many of the Macromedia products (not big into their GUIs and I also don't put together much flash stuff). Anyhoo...if it makes PS and Image Ready that much better, it's all good.

[HC_Chief]

Originally Posted by Wrasse

This should be interesting...

I'm mainly an Adobe/Corel guy when it comes to graphic design. As for web programming...I prefer notepad or some of my own creations so I haven't had the chance to use many of the Macromedia products (not big into their GUIs and I also don't put together much flash stuff). Anyhoo...if it makes PS and Image Ready that much better, it's all good.

I bet you would like DreamWeaver - the auto-generated HTML is actually clean. There is very little editing required (if at all) to ensure the site is optimally designed.

[ChiefsOne]

I used to use Freehand more than Illustrator, but more of the maket uses Illustator. There are some functions in Freehand that I like better, plus it some of the tasks are simpler to do in Freehand.

Hopefully they will combine the two and take the best from each.

[NewChief]

Originally Posted by ChiefsOne

I used to use Freehand more than Illustrator, but more of the maket uses Illustator. There are some functions in Freehand that I like better, plus it some of the tasks are simpler to do in Freehand.

Hopefully they will combine the two and take the best from each.

We loaded up Freehand on our machine the other day. We've hardly had time to look at it, but I'm not exactly impressed. It seems to have some 3-D rendering capabilities? But my wife is making 2-dimensional greeting cards, fabric prints, and patterns...not any kind of models. I don't understand why her company doesn't just use PS/Illustrator as the standard for the type of work they do. Of course, my wife would prefer to work with U4ia, because she's a textile/fashion design type.

[Wrasse]

Originally Posted by HC_Chief

I bet you would like DreamWeaver - the auto-generated HTML is actually clean. There is very little editing required (if at all) to ensure the site is optimally designed.

I've heard nothing but great things about DreamWeaver. I'd love to toy around with it at some point but with my focus moving more towards .NET, I'd have to understand how well both systems fit together.

[jcroft]

Originally Posted by HC_Chief

?!
There are tons of competing apps out there. The only Adobe product that is THE app - the one that pretty much all graphic designer uses, is Photoshop.

Are you serious? Name one app that doesn't comes from Adobe or Macromedia that any professional designer would consider using.

And you are suggesting that Photoshop is the be-all-end-all? Photoshop doesn't really do vectors -- and a LOT of design work requires vectors.

Jeff
Professional designer.

[jcroft]

Originally Posted by Wrasse

This should be interesting...

I'm mainly an Adobe/Corel guy when it comes to graphic design. As for web programming...I prefer notepad or some of my own creations so I haven't had the chance to use many of the Macromedia products (not big into their GUIs and I also don't put together much flash stuff). Anyhoo...if it makes PS and Image Ready that much better, it's all good.

Programming is a different beast. Programmers use text editors. Designers don't. These days, very few people are "web master" types who do it all. most people are specialists. There are too many jack of all trades, anymore.

The creative types use, almost exclusively, Adobe and Macromedia apps.

[jcroft]

Originally Posted by HC_Chief

I bet you would like DreamWeaver - the auto-generated HTML is actually clean. There is very little editing required (if at all) to ensure the site is optimally designed.

Dreamweaver generates very clean, good HTML and XHTML, but if he is a programmer, he has no need for it. A text editor will do just fine.

[Wrasse]

Originally Posted by jcroft

Are you serious? Name one app that doesn't comes from Adobe or Macromedia that any professional designer would consider using.

Jeff
Professional designer.

I'm not sure how 'professional' I am when it comes to the graphic design department (I'm more a programmer that is forced to design pages for the company due to size), but I really don't care for Illustrator and use Corel Draw instead.

If other pros would consider this...well I don't have a clue.

[redfan]

Originally Posted by jcroft

Are you serious? Name one app that doesn't comes from Adobe or Macromedia that any professional designer would consider using.

And you are suggesting that Photoshop is the be-all-end-all? Photoshop doesn't really do vectors -- and a LOT of design work requires vectors.

Jeff
Professional designer.

The GIMP, but I'm not sure how many pros actually use it.