Kannan
18-04-2005, 07:49 PM
SAN JOSE, Calif. - Combining two of the largest makers of software for creating and delivering digital content, Adobe Systems Inc. said Monday it will acquire Macromedia Inc. in an all-stock transaction valued at approximately $3.4 billion.
Macromedia shares rose more than 10 percent in early trading, while Adobe shares sank nearly 11 percent.
Both companies said the long-rumored acquisition was not to consolidate and cut costs but to help Adobe expand into new markets, particularly in the area of providing content to mobile phones and other handheld devices.
"This is not a consolidation play. This is all about growth," said Bruce Chizen, Adobe's chief executive. "We're doing this because we believe the combined offerings will be even more compelling to our customers given the challenges they're going to face in trying to communicate information in this very complex environment."
San Jose-based Adobe's software includes the popular Acrobat program for creating and reading documents that can be viewed on a variety of systems, including PCs and cell phones, as well as the popular Photoshop program for working with digital photographs.
Macromedia, based in San Francisco, makes the Dreamweaver Web-design program and Flash, which is used to animate and add interactivity to Web sites. The company recently announced tools for expanding its reach into mobile devices as well.
Neither company, however, would speculate Monday on actual product plans.
More Info Here (http://news.yahoo.com/news?tmpl=story&u=/ap/20050418/ap_on_bi_ge/adobe_macromedia)
Source: Yahoo (http://news.yahoo.com/news?tmpl=story&u=/ap/20050418/ap_on_bi_ge/adobe_macromedia)
Thanks to ShekharPalash, I have added direct links to Adobe and Macromedia news releases.
Adobe News Release Here (http://www.adobe.com/aboutadobe/invrelations/adobeandmacromedia.html)
Macromedia News Release Here (http://www.macromedia.com/macromedia/proom/pr/2005/adobe_macromedia.html)
Macromedia shares rose more than 10 percent in early trading, while Adobe shares sank nearly 11 percent.
Both companies said the long-rumored acquisition was not to consolidate and cut costs but to help Adobe expand into new markets, particularly in the area of providing content to mobile phones and other handheld devices.
"This is not a consolidation play. This is all about growth," said Bruce Chizen, Adobe's chief executive. "We're doing this because we believe the combined offerings will be even more compelling to our customers given the challenges they're going to face in trying to communicate information in this very complex environment."
San Jose-based Adobe's software includes the popular Acrobat program for creating and reading documents that can be viewed on a variety of systems, including PCs and cell phones, as well as the popular Photoshop program for working with digital photographs.
Macromedia, based in San Francisco, makes the Dreamweaver Web-design program and Flash, which is used to animate and add interactivity to Web sites. The company recently announced tools for expanding its reach into mobile devices as well.
Neither company, however, would speculate Monday on actual product plans.
More Info Here (http://news.yahoo.com/news?tmpl=story&u=/ap/20050418/ap_on_bi_ge/adobe_macromedia)
Source: Yahoo (http://news.yahoo.com/news?tmpl=story&u=/ap/20050418/ap_on_bi_ge/adobe_macromedia)
Thanks to ShekharPalash, I have added direct links to Adobe and Macromedia news releases.
Adobe News Release Here (http://www.adobe.com/aboutadobe/invrelations/adobeandmacromedia.html)
Macromedia News Release Here (http://www.macromedia.com/macromedia/proom/pr/2005/adobe_macromedia.html)